Maximize value on this deal?

[Kevin Dugan]

Hey Everyone, Current situation is house in Lancaster CA is being rented Section 8 housing, balance on mortgage is 104K at 3.5% current mortgage payments are 600, rent payments are 1400. The customer wants to sell for 135-137, ARV is 145, repair costs of house is unknown. Under this circumstance I plan on tying up the property as a “subject to” current loan. Would it be worthwhile to offer 30K cash with the clause of keeping the current loan in place over the duration of the loan? From here I could pay the mortgage and take the cash flow of 800 or I could market the property as a for sale by owner with a “lease option” contract? Any recommendations? Thanks Kevin