What's the best option for getting a rental to cash flow?

[David Lopez]

I'm new to real estate investing, and am very interested in a single family rental property currently owned by an aunt. She bought the home several years ago under a traditional mortgage, but pays a ridiculously high mortgage every month compared to how much the house rents for.

Put in a simple matter, she's fed up with the situation and has my immediate family (We live in the same town as the property, while she's living far) managing the house. It's in relatively good shape, hardly any issues, and the current tenant is very cooperative and responsible, he intends on staying for at least another 2 years.

I'm seeing this as an opportunity for my first buy-and-hold property. It currently rents for $650 monthly, while the mortgage is about $865. The principal for the property currently sits at about $86,820, with an Escrow balance of about $850.

This is obviously a very bad deal as it is; my question is what would be the best option to drop the mortgage every month in order to get a positive cash flow, either by refinancing the mortgage, or getting some other loan at a much lower monthly cost?

Any and all answers are greatly appreciated.