Master Lease Option Vs Seller Financing

[Oneil Okpaleke]

I am a new investor looking forward to buying my first rental property. I recently met a nice old man at a coffee shop who is willing to sell me his house. From my research on Zillow, Trulia, and realto.com; the property is worth anywhere between $100k to $120k. I also drove down to see the property and it is a fixer-upper that will require a sizeable amount of work because it hasn't been renovated since 1965 when he purchased it. After running to numbers through BP Calculator, I am in the process of negotiating to make an offer on the property for about $25k with an estimated rehab budget of $30k, and ARV of $100k.

I have a couple of questions for my first move;

Do I first sign a contract with him for about 6weeks to do a detailed due diligence on the property?

And if all goes well and if he is Okay with a Master Lease Option or a Seller Finance? AND If I plan on fixing it up first before renting. which one do I go for and how?

Thanks!