I was offered an investment opportunity in a college town

[Brent Paul]

I was recently offered a 3 bedroom house for rent in a nearby college town. It's within walking distance to campus and in a great neighborhood. Also there are many elementary and middle schools within a mile of the house. The owners keep excellent records of everything and they have actually rented to more couples with children than college students.  They kept me in mind as we have talked many times over the last 4 years about rentals.  They have the rent set well below market rate.  

The owners are in their 70s and downsizing and wanting to get out of the rental game as they have been in it over 40 years. The house is owned outright with no leans they are aware of. The catch is the lady renting was a smoker. So we will probably have to get an ozone generator in there and repaint etc. Within the last 6 years they have done the roof, furnace, all windows, carpet, bathroom, and kitchen remodel. House was built in 1900 and the siding is brick.  I haven't personally walked inside yet as they are still trying to get this lady out.

They are offering it to me for 75k and based on comps in the area I think it's worth at least 100k. It was appraised at 95k a couple years ago.

Rents in the area range from 1200-1400 for the same sft and number of bedrooms depending on how recently it has been remodeled.  

I'm thinking worst case scenario if the lady destroyed the place I will have to put in at least 5k.  We did a drive by and the outside looks to be kept in great shape from what we can tell.

The owner might be open to owner financing.

Thoughts?  Suggestions?