Seller needs help getting rid of his house.

[Cabri Griffin]

So I just started some direct mail marketing to try to find a deal for me to flip and wholesale the rest. I've sent out about 300 yellow letters (I know small), and I received approximately 10 calls. One guy is very motivated to get rid of his house. He is in his 70's and on a fixed income. He owns a SFR (3 bed, 1.75 bath) in a nice country club neighborhood in Riverside, CA. The home is also located near UC Riverside. Currently the house is listed for 400k, but due to the condition no one is biting. He currently owes 366k split into two mortgages. He has owned the home for 30+ years and refinanced multiple times. I don't know what he used the money for, but apparently not the house. After looking at it, I'm guessing it needs about 50-60k in repairs to be retail ready and maybe 20k for a rental. The comps in the area suggest that the ARV would only be around 410.

So, I figured I cannot flip this house or wholesale it, but I'm trying to help him out. His mortgage payments amount to approximately $3000 a month. The best I could think of is him getting a loan modification to get the payments reduced and taking it Subject To. If I make this a student rental and get an average of $600 a room. There is a den a finished garage I can turn into rooms and get $1200 more. Another option that I can think of is just short selling it, but I don't know if you can do that if you haven't missed any payments. 

Guys, I'm just searching for ideas to help this nice man out. If you have any, please let me know. 

Thanks