Seller Finance, how should I structure ? (So. California)

[Jeff Smith]

Have a potential deal -- want to see what the consensus says on this one:  

seller owes approx $133K

DQ balance w lawyer fees, dq payments etc ($11,500) 

ARV $195K

No foreclosure sale date. 

Seller just doesn't want a FC on his record -- he has agreed to allow us to bring him current and take over payments which are $1188/mo PITI, incl his solar panel payments.

So exit strategy:

1. Rents in area go for approx. $1200 so no cash flow there.

2. Sell it "as-is" FSBO for $150K or so and pocket the difference (problem is its in OK condition and could take mos to sell)

3. Lipstick fix to get more money (paint, floors etc basic) and wholetail it for a bit more

4. ?????? 

Any replies appreciated...thanks.