Purchasing SFH from relative

[Brock Pellerin]

Hey Everyone,

So my girlfriend's mom is looking to sell her home right now and we are interested in buying it.  The house was originally purchased for $120,000 and after remodel can sell for about $150,000.  Her mom has about $8,000 left on the loan.  it is looking to rent for $1300 based off of neighboring prices.  The advice we are looking for is if we decide to acquire the place, which would be the best approach.

We can pay off the rest of her mom's mortgage and then split the profits with her. Or we can outright buy the place.  (we will have to run the numbers to see if the place will cash flow properly. 

Any other ideas or advice is welcome!