A short sale might be an option if the seller’s lender agrees to take less than what’s owed.

Some types of Creative Financing include: Seller/Owner Financing, Land Contract, Wrap, Assumption, Subto, Lease Option, Contract for Deed.

Based on my experience managing a significant number of rentals, leasing back to a seller can work, but it’s essential to approach it carefully.Lease Start Date:The lease should be signed at closing and start on the same day—Monday in your case.

They do seem possibly open to seller financing the difference of $172K.

Now you schedule your purchasing closing assuming the balance on the mortgage is equal to or less then the as-is value. - NOW the seller has to be willing and able to move out before your closing date.  

To adapt, focus on refining your ARV and repair cost estimates, explore off-market deals, and consider creative financing strategies like seller financing or partnerships.

I’ve only bought a thousand houses Mostly sub2 and seller financed

One, you might want to consider Seller Financing (in Michigan, we call it a Land Contract) which can allow you to buy property while using the Seller as Banker; not all Sellers are open to this, but it can be beneficial to both the Buyer and Seller.

Seller financed deals.

It can easily take 6+ months to find a motivated seller. - Just be prepared, because a motivated seller typically has a property with issues you need to be sure you can solve.