Ideas anyone?

Hi all
Just thought I’d run a scenario past the forum and see if anyone had any ideas…
I’ve been offered a house to buy privately. suburbs of Melbourne. Was valued by Liberty a few months back at $180k, RE agents around same time said $170-175k (how rare is that, the valuer’s figure was higher??).
It’s been offered to me for $163k.
Looking around, there’s almost nothing under $200k in this area, mostly they’re $220k +. Rents are mostly around $240-250pw.
Now, I could buy this, wrap it and make a healthy backend profit, and have the weekly repayment about $100pw above rental for the area, which is fine according to Rick Otton’s strategy.
But the current owner is planning to go off and rent, put away his extra cash each week (he earns a lot) and buy another house down the track. He doesn’t want to be stuck with a 25 year mortgage, currently at Liberty’s 10.5% or so rate variable. He has some credit marks from a while back.
I probably should just thank him very much for the deal, grab it and wrap it, but I like this guy too and I’m wondering whether there are any other ideas here? I mean, if he’s going to rent anyway? He owes $153k on his loan and wants to pay that off, so I don’t know that there’s much of an opportunity for him to vendor finance part of the money to me.
Hmmmm I just got myself thinking…. can I do this as a deal where I won’t need a deposit? I’m sitting on instant capital growth, potential for minor cosmetic reno & more equity….
Help!!! I shouldn’t think this hard early on a Sunday….

Keep smiling
Felicity