Buy owner financed at 9% interest or rent and save

[Mike Walsh]

Hello Bigger Pockets. I currently own a house in Louisville Kentucky which I am going to start using as an airbnb rental. So I need a place to live.

I recently quit my job because I have 2 companies that make more than I did at my job. I am pretty sure I would not qualify for a loan. However I strongly believe I can get a loan in 2 years.

I found a house with the owner willing to finance. It's 1,300 sqft in Saint Matthews and I believe it's worth $250k but needs minor repairs. It also has a full attic which I will refinish giving me another 5-700 sqft. With houses selling at over 150/sqft that'd add $75-100k to the value correct?

Here is what they want:

$230k purchase price

$10k down

9% interest (They will not move even one percent)

Over 30 years

No pre-payment penalty 

I realize these numbers don't meet requirements as a rental property, but it will always be a primary residence. Would I be crazy to pay 9% interest on it? Or does it make sense because there's significant value add and 20k in instant equity? Would I be better off renting for 2 years then getting a loan through the bank?

Thanks in advance.