Personal loan vs. Conventional mortgage

[Sam A.]

I am looking to buy my first rental property within the next couple weeks. I have found a 2bd/1ba originally listed at 38,900 that dropped to 30,900. It needs about 8k to rehab. I thought about offering 25k and on my way to see it for the second time, they dropped it another 5k to 25k. I now am thinking of offering 22,500. Comparable rents in the area for same bed/bath and sq. ft ranges $650-850/month. Originally my loan officer said 25% down and 5% for 30 yrs with rehab cost included in the loan. Now she says because it's so low, she cannot get an investor on the secondary market to take it, so she wants me to do 25% down, rehab with my own funds, and do 6.5% for 5 years and then refi for another 5 yrs with whatever the rates are at that time. She said now with that low price, it would be an in-house loan much like a car loan. I dont need the tax breaks due to my small yearly income and two kids and full-time school. I want maximum cash flow. Do any of you know of a better option other than asking a ton if banks to carry it for 20-30 yrs at 5-6%? originally it seemed that it would fall into the 2% and 50% rule, but now it doesn't. Any help would be much appreciated as I am writing the offer this morning with the realtor and then talking with the loan officer Monday morning about a pre-qual to attach to the offer and then sending the offer through Monday afternoon. Thanks in advance!