Deal. Or No Deal. (that makes sense)

[Alec Perron]

A friend of my, who works closely with a lot of real estate agents in Michigan, told me about this 3 bedroom 1 bath house being put up for sale for $107,500

It’s in a great neighborhood, school district, low crime area. The neighboring homes with very similar specs, have sold for $160,000-$170,000 or rented out for $1,200-$1,500. 

It’s technically move in ready, but needs a lot of updating inside (floors, kitchen, added appliances), as well as a new roof, windows, doors, siding. I’ve always done construction and currently sell in the industry; so I’m very okay with the sweat equity it’ll take. 
The owner is willing to do a land contract, assuming he knows it needs about $40,000-$50,000 of work done on it. 
I personally don’t have the funds for a down payment or repair costs, so I’ve talked with a potential investor who is very interested in backing me.. IF IT MAKES SENSE of course. 
Being new to this world, Im struggling with the best options to lead with to make it make sense for all parties involved. 
From what the real estate agent says; he doesn’t seem to be interested in going much lower… so going $147,500 all in to make hopefully $10,000.. doesn’t seem worth it, even if I held the property to rent.. it doesn’t leave me much wiggle room for potential market drops in home value or renting it out, if I took that option. 
I would be beyond grateful for some creative strategies  to make this all make sense.. more so I feel like it comes down to figuring out a way for it to appeal to the seller.

Thank you in advance BP family!