Creative Financing Question

[Sara OBrien]

Okay so I have a question about creative financing. Loans from a bank are about 8.2% for single family homes. There is a property listed in a great up and coming area for $298,000--3 bed, 1 bath. I believe the seller is motivated to sell and it’s been on the market for 6+ months now. I wouldn't really have to put any money in for a reno/rehab. The average rent in the area is roughly $1700 per month. Closing costs would be around $16,000. As it is now, the cap rate and cash on cash return is not great once I calculate it out. And once you factor in interest, you are losing money since the interest alone is more than you’d get in rent once you deduct approx 50% expenses. Anyone have ideas on how to creatively finance this to make it a little bit better? The equity portion will end up being the positive with the buy and hold method, so I’m looking for a way to be creative to get to a better income flow/better return. What’s everyone think? Seller financing? Any ideas?