The lower rate or longer term can also make the payment more affordable. 

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.)

Pay your vehicle loan, credit cards, etc because in 12 months all of the accounts you pay out of a business checking account will be omitted from your DTI in the future. 

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.

Renovations that truly add value-like modern kitchens, open floor plans, and energy-efficient upgrades are making the difference in selling faster and at top dollar.Financing & Interest Rates: The higher cost of borrowing has made tight budgeting more important than ever.

The default rate is only 1% per month which is 12% annual.I assume there are more pages to that agreement

Plus today's rates for conventional loans are in the single digits, which are lower than hard money.

That was when the market was stabilized, rates were sub 4.5% and distressed properties actually sold for a significant discount.Today, distressed properties sell for a premium and cash out refi rates are over 8%. 

They are short term loans, usually 6-12 months, high rate, interest only payments. 

Come up with terms (Down Payment, Interest Rate, and Amortization Schedule) such as a 5% Down Payment, a 6% Interest Rate, and 30 Year Amortization Schedule.