Help me structure this deal!

[Zebo Zebe]

Hi all,

I am a relative newbie and looking to get into real estate investing. I called on an expired listing today in a "OK" neighborhood in my area. Home was listed at $129k for over a year. Home is clean and updated, built in 2005, and would rent for $1200/month. Speaking with the home owner, they live out of state and are open to selling the home on contract  (owned free and clear and has been a rental property).  I'd love to secure my first rental property and was wondering how some of you would try to structure this deal. Here are the numbers;

List price: $129,000

Taxes: $3,400/year

Insurance: $~700/year

Est. Rent: $1,200

HOA: $145/annual

I'm having a tough time getting the numbers to pencil out but given that I could possibly get into the property with no or low money out-of-pocket I'm curious as to if others would try to pick this property up. One thing to mention... Homes in this particular neighborhood have tended to hold their value but have had virtually no appreciation and I believe that will continue to be the case.