Can't see outside the potential box - what do you see in this scenario?

[Christina R.]

BP Nation,

I received a call from a seller today with the following scenario.

* 4 bed/2.5 bath SFH built in 1980

* has a 15 yr mortgage of $135K - owes approx $125 on it.  note is about $1300 a month

* has put in $120K in repairs, etc. in the last year

* has tenant who would like to stay several more years until child finishes school

* tenant pays $2400 and her utilities except water which owner pays

* house a few doors down on same street is under contract at $420K. comps range from low 300s to mid 400s.

*  If it had to be sold "tomorrow," would like to get $300K - basically mortgage, $ invested and a little extra.

Owner has some other investments that are being paid on to the tune of several hundred dollars a month.  Definitely there is financial motivation in play but to what extent, I'm unsure.  owner is open to creative financing. Owner has mentioned equity stake, partnership, creative financing, etc., and appears to want to continue some ownership interest or long-term financial interest.  Not sure how that could work other than profit sharing on net rent income.... was thinking possible sub-2 on the mortgage but I'm a 50% rule believer on the rents so a 30 yr at approx 600 a month would have worked immediately in my mind relative to the 2400/mo rent ...

I'm still too green to see out-of-the-box possibilities, if they even can exist with this situation.  So I need the BP Nation's input.

Any potential scenarios where this could work if it was not put on the MLS and outright sold to liquidate it?

Thanks in advance for any replies.