Help me make this a deal!!!

[Josiah Stacy]

Hello all!

I'm working with a seller of a rental property right now who is open to consider owner financing on their property. This will be my first owner financed deal (and my first deal period), and I'm trying to put together some numbers to make a win-win offer on the property, but I'm struggling to find a scenario where I can cash flow. Can anyone provide any advice for what a solid and creative offer could look like? 

Here are the details:

The property is located in rural Ohio. It is a single family, 3 bed, 1 bath, Cape Cod style home with 1372 sq ft of living area, a 2 car detached garage, an unfinished basement, on a corner lot. I've estimated the full market value of the property to be around $80,000, conservatively. The property is not in need of any major repairs. The property is currently rented on a month to month lease at $650/mo. Taxes and insurance are the only landlord paid expenses. Taxes are $77/mo and insurance should be about $75/mo. 

Now, I'm fairly confident that I can raise the rent to $700 without losing the current tenants. In my non-expert opinion, I may be able to rent it out for as much as $800, but I certainly don't want to count on that to make the deal make sense. 

I have access to some capital outside this deal, but anything over about $3k would have to be borrowed through home equity on my own home. 

I've already run the rental property calculator a number of times using various purchase prices and rent amounts. I'm able to make it work for my requirements at $60k purchase with 5% interest over 30 years and 5% down ($3k), at $800 monthly rent.  Using those numbers, with 10% each for vacancy, capital expenditures, and repairs, I'm coming in at just over $100/mo for my cash flow, which is my goal. 

Don't get me wrong, I'm comfortable with this offer, but I'm not sure that the seller will like it. Are there any other strategies I might not have considered here, or am I just grasping for a deal here where one may not exist?