First Post! Need Help Analyzing a Deal

[Ronny Versey]

Hello Everyone, 

Newbie Investor here.  Wanted some help in deciding if the following is a good deal.

Seller owns a free and clear property, that needs updating (kitchen gut and roof work - est costs $20-25K all in)

ARV is $185K

I offered 80K for a wholesale which was rejected.

He is open to an owner financing for 130K with down payment and 5% interest (all his offer)

My exit strategy is to lease option to a prospective seller.

Before I counter, my question is, how can I do this without putting money into house to update?  

Hopefully my question makes sense.  Let me know what other information you need to help answer.

Ron