It started dropping ~ 6 months ago.

I am really concerned at this time, and feel that my PM has dropped ball in marketing the property - 1) to initiate the rent too high in the beginning and 2) to not follow up, make adj. accordingly, and promote the rent timely when inquires were low in the first couple of week or marketing. 

I would also point out that property values are still high and may continue to drop.

When you look at the MLS you will often see properties that are there, priced appropriately that don't sell, or drop in price. 

Hopefully rates will drop, values will hold and you'll punch the balance down quickly.  

Tenant quality dropped along with my cf.  

To Nathan's earlier comment the market actually got better in the last 60 days since there was a slight drop in rates...

Also if at some point interest rates drop a little (maybe 5% range) cash flow will be more juicy.Anyone thinks the numbers make sense or should i wait for interest rate to come down some before i proceed?

You haven't seen a lot talked about in regard to seller financing for many years as interest rates have been dropping and  buyers could easily get loans.

Once we've used a GC a few times on jobs & he's proven himself we may drop this. $ is released to the GC based on the result of the 3rd party inspection4.