Need help on a possible deal

[Dan Miller]

Got a call from a seller and here's the info:

SFH that he described in good condition, needing updating on the finished basement and the bathroom as well as a new roof probably (mainly b/c it's old, not b/c it's leaking). He said the kitchen is updated and it has new windows, carpet, and paint. Comps in area sell for 210-250k or so. This house only has 1bath (but 4 BRs), whereas many have 2BA, so let's assume the lower end of the range. He listed for a while at 290k, and eventually dropped to 199k, but has now withdrawn the property from the market. He wants to sell because a) his agent wasn't able to b)he's aging and can't climb stairs anymore. He's also behind on his 2nd mortgage by 2 months, but current on the first, which is somewhat odd (this is arrears of about $700).

He owes 139k and wants about 10k at closing. Said he'd take 150k and sell subject 2.

There seems to be equity in the property and a possible deal. The possible red flags are a) why wasn't he able to sell it for 199k when most sales are in the low to mid 200s in the area; b) why doesn't he just list it again at a lower price; c) what is he not telling me about his situation given that he's behind on his 2nd, which is a small amount?

I have an appt with him on Sunday...curious to hear opinions on how to handle this. I was thinking of offering 149k, subject 2 existing financing as well as paying closing costs, and brining the loan current.

I would love to then flip the property to a handyman end buyer to put in the 15-20k and create a property worth 220-230k.

Thoughts?