Possible Sub2 or Purchase

I too have a house that I found and the owner wants $120k but the fair market is $116k. They own it outright, but have not been able to move it, rent it or do anything with it other wise, because of the price I believe. They are not in a hurry to move it at least that is the take I got from them, but I do believe that they may allow for a L/O. I think that I can get an min of 5yr term offer $110k and put 5% down. I think I may be able to go lower because the house needs some work maybe few thousand to bring it up to really good standard. But if not is this looking like a good deal? My concern is that the area is trending upward a good 5-7% yearly and this very same house was appraised at $122k last year. Anyone…

This is not a good deal. You are paying retail and putting 5% down, you can buy these all day long. The closer you are to market value, the less you should pay the seller.