Need help with possible first rental property.

[Mason English]

Family member is wanting to sell her house next month in Nederland, TX. (Small town) She knows I want to get my first rental property this year, so she is giving me first option to purchase. 

Built- 1950's...3 bed/1 1/2 bath/ 2 car garage...1432 sqft

Realtor.com Estimate $130,000 (But that doesn't factor the rehab needed)

She kept the house in decent shape, but I also haven't seen the house in a few years. From what I remember, it could use some updating in the more important areas considering its like 60 yrs old. 

Rehab Needed:

Both Bathrooms should be updated. Completely I think

Maybe kitchen? (Counter tops most likely) I think the rest was fine. 

Possible foundation issue (Which I know can be expensive) Uncle said he saw some cracks in the walls he was concerned about. Won't know more information until we get inspector out there..

A house a few blocks down is also a 3/1.5/2 and is asking $1,350 for rent. Based on the pics it could also use a bathroom remodel and some cosmetic stuff. 

ARV would be around $130-135K range i believe..

$$- I have a good amount of savings ready to go, and I also have a LOC of $15K i can use.

Based on the information..

What do you think would be the best route for financing this deal? 

and..

What would you most likely pay for the property to make this a good deal for you?

I appreciate any advice given.