He is looking for $290,000 but realistic offer price with the current interest rate and other expenses is closer to $260,000. 

I am thinking if we bought it for my mom it would be with the understanding that we wont make anything on it until we resell it in a few years, looking at rent in the area it wouldnt cash flow if we were to rent anything out with the current rates.

Also, remember that interest rates are also negotiable, and the seller gets all the money from the interest. 

(Quoted about 8.5% rate on a DSCR loan, and budgeting 10% of rents for capex, 9% for PM, and 5% each for vacancy and maintenance) After-rehab rents would be about 1350-1500 based on comps.

Conversely, I want to take that money and drop it on a Single-Family Dwelling in New Jersey (where I currently live) and then rent it out. 

Rates will be in the 5's right now.

This program is also winning on our weekly interest rate survey at the moment.Here is an example of a loan summary put together for a client last week.

There are markets that are very saturated with STR and with vry bloated prices and high interest rates it could be impossible to turn a profit at all. 

@Jon Thomson You didn’t mention what your current mortgage rate was but no sense paying down or paying off a low rate mortgage just to then borrow from the same property at a much higher rate.

Property manager started off using my chosen vendors, but as the years have gone by (I left in 2015) some have dropped out and slowly I have just started using the property manager's vendors our of convenienve.