Considering that a buyer could possibly also negotiate a better price and/or pay cash and avoid the mortgage expenses since the amount is quite low compared to other properties in Washington state, it could be much more lucrative.

It is comparable in square footage but does not have the basement or washer/dryer hook ups, plus one of the bedrooms is upstairs (very narrow stairs and steep ceiling angles in that bedroom).

Given all our student loans, the traditional financing options are not available.

I have a property with a very low initial basis compared to what it will  sell  for. 

It was a traditionally financed purchase, so low drama and once it closed we couldn't wait to find our next one.If you haven't already, I would recommend finding a real estate agent that you trust, and also start talking to lenders (banks, mortgage brokers, credit unions, etc.)

Also, I like to show them the difference in the $$ they would receive between a traditional offer where they cash-out at closing and a seller financing deal where they get interest income over a period of time.Example:  If the Sales Price is $150K and they own their home free and clear:- Conventional Cash + Bank Financing:  Seller gets $150K at closing.- Seller Financing with offer at $160K, $20K down, 6% interest,  30yr Amortization, 10yr balloon:  Seller Gets $237.8K over 10yrsBy showing the a really solid offer on price PLUS illustrating how much more they can make over time by offering financing, you might be able to open their eyes to the benefits of offering seller financing.Good Luck!

How do we take fluctuating rates of HELOCS into account... the thing about HELOCs is that there is risk in rates rising, but there is also more ability to affect your monthly payment and therefore increase your cashflow by paying down principal... which you can't do with a fixed mortgage.What are your thoughts for what points to consider and what levers to pull when comparing the two options when its a HELOC you're coming to a deal with?

Insurance premium of $1,200/yr seems a bit high, at least compared to what I'm paying in Maryland. 

Besides the traditional government authority routes, I really liked @Lee L.

However, the work we have to do (we do the turnover most of the time), along with the aggravations that come with dealing with the general public have made it not worth it any more for us, and we'd like to convert it to a traditional SFR.