Exit strategies for a SFR purchased in Phoenix

[Kevin Phu]

Wife and I purchased a SFR in Phoenix a few months ago with the plan of making it a LTR. We thought we had our rental numbers right but after listing it for just over a month, we're looking to lower the amount again and possibly look at exit strategies before we start losing money on the place.

We purchased it for 335K and it appraised for 360K. We also put some money down so we are sitting at about 18% in equity. Based on comps, we might be able to sell it for around 370K and after holding costs, commissions, fees, capital gains tax, we are likely looking at breaking even and getting our initial investment back. 

We've listed the property on Zillow and Apartments and have received several applications but denied every single one due to evictions, criminal records, not enough income, excessive debt, etc. We're looking to lower the rent lower but I'm not sure that would bring in better qualified applicants.

Are there other strategies we should consider? Section 8? Corporate lease? Best case scenario for us is that we get a long term lease in place and get enough in rent to cover mortgage and put aside ~15% in capex, maintenance, and vacancy reserves. If the rental market keeps going up as it has, after the first year our cash flow numbers would look much better but that is a way out.