Advice needed on potential deal

[Giacinto L.]

Hi BP community, I need some advice on what approach I should take in order to get this property under contract. I recently found a home for sale by owner, it's ARV is around $200,000-$225,000. The seller was renting it out previously and the renters completely destroyed the home. The home needs at LEAST $40,000 in repairs and the seller is asking for $180,000. When I asked him about his pricing, he stated he needs $178,000 to break even and cover his mortgage. He wants out of the home and landlord situation so he is motivated. The home has great potential, but tons of work! How should I go about presenting the offer and getting it under contract?

Thank you