Depending on how it is done and what guarantees the government offers and requires of the released entities, interest rates could move slightly higher.

If you're $400 below market rate I'd give them chance to "catch up".

The advantage with the bank was minimal closing costs, a good interest rate, and a draw system so I could get funding as I completed each rental unit. 

If you're willing and able, I do recommend the "house hacking" strategy which is just a fancy name for buying a rental property and living in one of the units, because you'll get very favorable financing - an owner-occupied fixed-rate 30-year mortgage.I'd also say, analyze that property as if you won't live there and it's a pure rental, and make sure the property is still cash flow positive if there's a tenant in your unit because then you'll know if it's actually a good investment.And when you analyze it, include payment of a property manager in your #s because if you don't, and doing so would make it go cash flow negative, then you've just bought yourself a job because you literally can't step away from managing it without losing money.

If someone offered to finance this house to you at your current rates if you put down $250k would you do it?

Is it high appreciation area with a low rate mortgage?

Check their nightly rate, occupancy and amenities.That will give you a pretty good idea of need and profitability.

If have investment property, we are looking for relatively updated units (we are ok doing some work ourselves), class C+/B tenants, with rents either close to market rate or that can be increased.

Quote from @Edgar Duarte: hi allI would love to get some perspective from your expertise, we have a property that we would have to sell in 2025 to avoid paying taxes on the capital gains, we believe we rcan sell it for $700K and get an equity of almost $500K after paying the mortgage balance, if we invest all of it option in index funds at 7% rate (standard com growth calculator), or in more rental properties as we are all here for, I can get the equity of around $900K.option B would be keep paying the house at 2.3% int rate while we have it in AirBnB and maybe sell it in 10 years for $900K, knowing that we would be paying taxes but it is not that bad still. or we can 1031 at that point?

But even then, seller financing is rarely substantially better than another investment they could make (including trust deed lending, which will often be at a higher rate than seller financing)In my experience, the owners who find owner financing advantageous are at the ends of their careers and are not interested in looking for another investment (other than the usual retirement funding sorts.)