I'll have to double-check if this TK company entertains lower offers since 10% CoC and $200/mo is pretty ideal.  

Seller seems pretty motivated (i.e. flexible) and has nothing to lose by working with me to get this thing closed, rehabbed, and cash flowing again, so perhaps he will entertain some creative techniques to get this done.David, or anyone else, can you give me some more guidance on the owner financing terms I might go back to the seller with?

Bigger Pockets has some great podcasts that are full of great info and entertaining.  

I would gladly entertain an owner financing arrangement.

The owners are my parents which is why they would even entertain a silly idea like this.)My question is:  What are the steps my company would need to take to gain access to this HELOC?

So will see. but if I got an offer on it once I have owned it a year or two so I could get cap gain or 1031 I would entertain that  other wise just see how it goes.Its in Eugene Oregon so pretty big metro area. with lots of people and this is I am sure the least expensive place in the entire region to live short of moving back in with momy and daddy

They are not going to entertain a wholesaler. 

Peabody Place development that redeveloped the area just before South Main with shopping, entertainment and dining. 2.

Like @Steve Babiak mentioned, call around to small-mid size community banks and see if they will entertain 20% down.  

Not only are your Podcasts informational but entertaining too and I don't know how you've done it but all the forums I've read have been upbeat and constructive, even if there's a negative comment, someone puts an end to it really quick - that's hard to come by these days.