It may pencil out if you're building an extra unit, but just a single bedroom is not going to work.

Contract for deed seems ideal as you could be making payments to him, which helps him pay the mortgage and extra for his apartment/travel.

Subject to sounds like a good option @Wynn Williams.

Some risk of foundation causing other issues but I think it's the best of the terrible options.

These are both great options for investment opportunities.

My question is what are my options for 10% down initial purchase with rehab able to be built in. 

I believe it is over priced (originally for sale by owner for $280k,later listed through agent at $360k), but I feel like the seller may be open to a creative financing option. 

@Ryan Dori lots of options besides DSCR. 1 Year income, Asset Depletion, Bank Statements, and P & L only loans. 

Another option is a personal loan, but positioning it as a home remodel (rather than an investment property rehab) could improve approval odds.

My wife and I own it together, but i may be able to buy her out and keep it as a short-term rental without spending all my personal capital.I’m looking for advice on financing options, buyout strategies, and any creative solutions others have used in similar situations.