Looking for Offer Suggestions on FSBO

[April Childers]

Hi Everyone, I have been thinking on this for a couple of days and finally thought why don't I just reach out to the experts for advice. I found a property that belongs to an older gentlemen who wants to sell his house and property. He owns it free and clear, it was his parents home so there is some emotional attachment to it but he has financial issues and cannot afford to keep up the property or pay off any of his debt. He wants $200k for the house and 3.86 acres but the house probably needs about $25k to bring it up par to list it. It is  a 2 bed, 2 bath and structurally seems to be in good shape. My plan is to actually split the lots, build a new house on the extra lot and sell both homes. I would like to structure the deal where we both win but not really sure how to go about it. He is open to owner financing, I thought about offering some money down and trying to do interest only for one year to give me time to fix up the house. I would appreciate any feedback because as you can tell I am not sure how to proceed but I think this could be a great opportunity, thanks as always all suggestions. 

April