Pretty House Sub2 deal

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I get a fair amount of calls from sellers with little or no equity. Usually their loans are so bad and/or the house condition is not great, so I'm not able to see a deal. I have one in front of me now that looks more promising:

Desirable house, good condition, great neighborhood

Current Value: $175K

Loan Balance: $193K

Terms: ARM loan, currently Interest only at 2.75%, will reset at end of 2015

Mortgage payment: Seller's monthly payment includes property taxes, for a total of $625/mo

Rent: $1300/mo

Seller wants nothing. She bought two similar props in the same area for 2005 for $275K/each with big down payments. She let the other one go to foreclosure in 2010 as there were crippling HOA fees and assessments. She's hung on to this one but it became vacant recently.

Question for you sub2 and lease/option people: Would you do the deal? And which one would you do and why? @Brian Gibbons @Ellis San Jose