Tired Landlord with Off Market Duplex - best approach to buy?

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HI BP,

I came across an opportunity that I need some advice with. I have an acquaintance (lets call him Bob) who owns a beautifully redone duplex in an area that is on the rise. Bob is a professional contractor who did alot of work to this property to get it in great shape so there is little room to force appreciation with a BRRR. The property is a 2 unit; utilities are submetered and both units can bring in at least $2,000/month combined. Taxes are higher than typical for the area though which skews the numbers a bit.

Bob is a 'tired landlord' who wants to sell and move somewhere rural. Bob listed the property on MLS for a while but realizes he was asking too much and it's now off market. Ultimately, he said the property was recently appraised and refinanced for 160K. The trouble is that, although he has owned the place for 30+ years, he still owes 127K .

I had a long discussion on the phone with him yesterday and he is open to creative financing such as seller financing etc.  Whatever will bring us to common ground. 

Now, I have a partner who is loaning me cash to fund short term deals.  At the end of an agreed upon period, I repay him the full amount plus interest.  I don't want to tie up any of my own cash in this deal. 

 I would like to purchase as a buy and hold and pay no more than 140K.  If we can agree on that number, what is the best approach to financing this deal?