Motivated Seller Open 2 Creative Deal| Need Help Drafting Deal

[Michael Williams]

I came across an FSBO sign while driving for dollars. I called the seller and set up an appointment. He is a veteran that is a tired landlord. He has a 2,896 square ft house with 4 bedrooms 3 1/2 baths, A great room, one car garage, a huge kitchen, a dining room, a laundry room, huge bedrooms, a fenced-in backyard, and a kitchen upstairs. It has outside stairs leading from the driveway to the upper level that makes it an idea for a paying tenant.

The seller is open to creative financing. He has a mortgage of $103k, he wants to pocket $16k after the deal. I had my realtor run an analysis and the ARV is $173k. He's had the mortgage for 15 years (Interest Only Loan). 

Work:
The bathrooms have old white tiles from the 60's so they will need to be upgraded and painted. Popcorn ceiling needs to be removed in 3 rooms. Carpet needs to be removed from 3 rooms and on stairs to the second level. Upgrade on the kitchen will include new appliances, upgrade countertops, paint, and floor tiles. There's a Laundry room a master suite with a walk-in closet. The entire house needs paint and landscaping. Plumbing and roof in good condition. Electrical unsure. Two HVAC units. 

My eyeball estimate is $25-$30k repairs. Will bring in contractor friend later to do a more accurate estimate.   
This is a flip to another investor. 

Anyone have some pointers on the best way to approach this deal. 

Recap: 

Mortgage $103k with Chase
Owner wants to pocket $16k
Estimated $25-30k rehab
Seller open to Owner finance and other strategies
My wholesale fee $10k
Realtor estimate: ARV $173K
B neighborhood
Vintages homes
1 mile from Cooper-Young District in Memphis
1 mile from University Of Memphis Football Stadium 
2 miles from downtown Memphis and FedEx Forum