Owner Finance - How Low Can You Go?

[Dovid Staples]

Hello BP,

I know that setting up owner financing is not difficult nor should it cost much to set up and service. However, I am trying to acquire a parcel of land that is only $3,500. Since a perc test hasn't been done on the property I want the  owner to carry the note. His agent is claiming that at that price seller financing is cost prohibitive. I have been unable to find any info on how the  service fee and set up change for a lower note amount. 

Is this true? How low can you go before seller financing doesn't make sense?