Would you do this deal? How would you structure it?

[Chris C.]

Spoke with a lady selling her rental property and said she would owner finance.  

Property ARV $195,000

Long term renter paying $950 market should be about $1200

Renters lease is up in March.

Said she knew it was worth about 195k but would discount for not using agent etc.  Sound like she would work with numbers a good bit but not highly motivated.

She would want a 4.5 - 5% interest rate.  Down payment was not discussed.

What would you do with this deal? 

Potential rental?

Lease option/finance to another buyer?

What terms would make it work for you?  If at all.