Is there a deal here?

[Robert Capel]

My assistant found this property on Zillow with an arv of $160k advertised for 138k The seller is willing to go to the mid to high 120s, and or hold a note with 25% down. It's in a rougher neighborhood but the renters have been in place 8 years and are paying 1100 a month. The rents for the area are 1200-2100 for the same 3/1. According to the seller the house is free and clear with no debts. Also it should be noted the house is solid concreted and was moved to its location rather than built there. The property seems to be in descent shape although could use exterior paint. My question is, since I'm still a real estate virgin and haven't made my first deal yet, how should I (or can I) structure a deal here? Please help! Thanks!!