What would you do? Is this a deal in Memphis?

[Ben Roberts]

Normally I wholesale properties in Memphis but I got a call from a seller with a 3/1, about 1,200 sq ft.  The owner says its got a new roof, carpet, and appliances, the HVAC is in good shape and that property has been approved for Section 8.  

He owes $35k on the property, but I think it's only worth about $30-$35k. However, he says that he's willing to let someone take over the payments, so I'm thinking potential subject to deal. His payments are $332 / mo PITI. Rent is in the $700 / mo range. Just looking for some advice from the group. Would you pursue this as a sub2 deal? or do you have better idea? What would you do?