I'm afraid to offer a low price to the owner since they are not motivated and are happy with the incoming cash flow.Any ideas or tips on how to make a offer like this would be greatly appreciated. 

I'm new to real estate investing and I'm exploring the idea of using money that I have tied in a 401k retirement fund in exchange for an investment property.  

I'm looking to the group for creative ideas that I can use to attract preferred equity to recapitalize an existing portfolio.

Its always a good idea to talk to the building dept about what you want to do before you start.

The Nest thermostat is a great idea Joe.

Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsRead Beginner’s Guide: http://www.biggerpockets.com/real-estate-investingCheck out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/Wishing you the best!

I merely want to know about reference materials on this subject and is my idea doable? 

Thanks to unlicensed brokers I got a deal....Thanks to unlicensed brokers grandparents missed the birth of their grandbabyhttps://www.biggerpockets.com/forums/93/topics/354452-got-offered-a-10k-assignment-fee-unsolicited

You mention the owner has paid $70k on the mortgage but that isn't a number that matters (since who knows what interest rate he's on or if he's made any extra payments), what matters is what the outstanding balance is on the mortgage and can you offer them a purchase price that is A) Fair to the owner, B) Helps them sell with some amount of equity and C) Gives you room that it financially makes sense.The numbers change based on if you want to flip it or rent it, making the question "does it make sense" different based on the direction you choose.In short, I have no idea how much I would offer...

Buying a college rental could be a great idea, if your going to college that is, that's up for debate elsewhere on the BP forums.