Win-win for an elderly seller?

[Amanda G.]

A grandfather is FSBO-ing his deceased mother's house. He had a tenant in it, but didn't get several months rent before they left. He just wants it gone. His thinking is that he doesn't want his heirs getting $200/mo forever, just collect the lump sum and call it done.

The difficulty is that he wants about $20k more than the house is worth in that neighborhood. He is asking $80k, and it is worth $60k (at least to me).

I'm trying to come up with creative ways to get him closer to his asking price over time. I don't want to do an option because I want to make some major renovations to up its value as a rental. I was thinking about opening up the conversation about owner financing again, with some language in the note that it will come due 90 days after he passes or 3 years, whichever is later. is this too weird? Anyone have other ideas I could use to sweeten the deal for him?