@Fred Pineda This is really simple, the seller is looking for a sucker.  

@Joshuam RiveraWhen you do owner-financing, the sellers are legally obligated to inform you about all underlying debts.

But it has to be ok with the seller.

Here it is nearly impossible to get financing for one, and the rental demand is hit or miss.  

Based on your thoughts and a couple tweaks, lets try this again....Management -  5% - 119Insurance - $125CapEx -   lets bump it to 10% - $237Taxes - $291.33 - $2495 /yrRepairs -   10%  -  $237Interest and Principal - using the Bigger pockets estimate, this came out to $420.13 /month based on an $88,000 loan Vacancy - $118.75 - 5%Electricity $150Water ad Sewer $50Propane tank lease - 25Heat  - $75(Tweaked some of the utilities after learning more info from the seller)Total expenses comes to $1848$526 Cash Flow -  $263 per doorNext step is getting a contractor to take a look at the roof and foundation, if that turns out ok I might take a stab at this one!

The property seem undervalued even if I bulldoze the house and start over (the seller said there is no kitchen so I may have to do that).  

Ask seller if they need repairs, etc.

The price is still negotiable however, the seller will just have to go ask the lender if they will approve of that selling price.

Interesting, compared to this - "The National Association of Realtors estimates that the country’s supply of for-sale and rental units combined is 3 million units short of current demand."

Seller will receive the remaining proceeds minus sellers share of closing costs.