How would you move forward with this deal?

[Marcus Kennedy]

So through mailing to absentee owners I've come across a decent property that has a renter in it. I told the seller that I would be looking to buy and rehab. I have not seen the inside of the home yet but ARV of this home is around $160,000 or so. The home might be in great shape and in which case I can't do anything with this home. The renter is paying $800 a month for the last 4 years which I think is pretty low.

Assuming he's not interested in a lower offer like $110,000-$120,000, what strategies would you use to acquire this home in a good part of town? I think he owns the house outright. Seller financing? What terms could I offer with as little coming out of my pocket as possible but still looks good to him but where I am in a good position too.

I've told him I don't pay retail for homes and he says he "understands" but still wants me to come look at his home and make an offer. I'm not interested in picking up a renter especially one that is only paying $800 in rent.