Why do people offer seller financing when rents are 2x higher than the payments?

[Ben Bakhshi]

We are approaching some deals that offer owner financing.
As an investor these deals make a lot of sense for buy and hold.

Terms like, 20% down, (prime plus 4.75) 8% interest at 30 year amortization, and interest rate can change after 5 years.
Monthly payments are around $400 a month.
Home can be rented for at least $800 a month.

Just curious because I am finding this almost "too good to be true" despite the high interest rate.

Reasons why I would consider offering owner financing in a sale:
1. I seriously need the down-payment right now.
2. Some other tax related issue that I don't currently understand.