Advice on what strategy to use

[Stephen D.]

I have an absentee LL wanting to sell his property for the mortgage balance ($275K) but the property in it's current condition is worth ~60% of the mortgage balance mostly due to the condition of the property.  When rehabbed, it would be worth about $240K.  The kicker is that the property taxes and insurance are fairly high, about $1000/month and the average rent in the area is $1550/month.  The LL wants to walk away from the property and is open to creative financing options.  Any advice on what could be done to make this worthwhile for all parties involved?

Thanks in advance,

Stephen