Need help with first deal! Subject to or Cash or Loan?

[Emily Chan]

So we found a house where the owner just refinanced, the owner has about $145,000 on a new mortgage with 30 years. The owner is an elder. The estimated market value of the house is about $240,000. 

Owner is asking for $175,000 - $215,000.

We are not going to rent out the house, we plan to live in the house, and 1-2 years later, we will do some rehab and sell the house.

How would you recommend to finance the deal? Subject to, pay cash or get a loan? The mortgage has a one-year living requirement, How can we deal with that? 

We appreciate any suggestions.