Seeking advice on a possible deal

[Kwok Wong]

I’m a newer investor in Honolulu and spoke with a seller going through a divorce. They want to sell their home in the next 2–3 months.

Here’s the situation:

• Seller wants around $465k–$480k
• They bought it about 2 years ago for around $420k
• Looks like they have a VA loan around 6% interest
• PropStream is showing possible negative equity
• Recent sold comps look closer to $420k–$440k

From my understanding:

• A flip does not make sense unless I offer much lower
• Subject-to does not seem good because the payment is high and I’m not a VA buyer
• Seller finance also seems difficult because there may not be enough equity

Besides listing it with an agent or doing a short sale, what other options would experienced investors look at here?

Would a novation agreement make sense in this situation? Or is this just a deal that should be passed on?