I wouldn't worry about the $1000 payment.

She put a portion of the down payment (15K)...and of course there is a little equity...

One that is pretty dang reliable for performance.

The new buyer puts down 10% as the option fee, ($50,000 fee to our buyer) in this case, and we make the rate 10% to the new buyer for the monthly payment. 

It won't change the payment unless you refinance.

I wanted to leverage as much as I can with the equity that I have on other properties that I have in my portfolio to use as a down payment for the investment properties. 

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

Thank you and be well-ShawnT Buyers aren't necessarily interest rate shopping they are shopping for affordable payments.

I don’t see where a rental would make sense, so I’m trying to look at other options to cover the monthly payments until the market goes back up.  

This seemed to be the most reliable way to find someone that I feel confident is good and knows real estate.