If you don't plan to ever househack this duplex, I would let NOI, cap rate, expected appreciation, and projected IRR drive the valuation.

Hey there, I run a Real Estate Call Center I think I see some things that can help:-First off, 9% contact rate is not bad at all.

How is your occupancy rate?

Expect a higher rate and/or fees with these types of programs.

I’d love to hear who you’ve used in similar situations, or what sort of rates and terms could be expected.

(I'm worried that my sisters lower credit score will negatively impact interest rates)Purchase the house outright for $160K , pay off the note, wait 6 months seasoning period and take a HELOC out for AUD.

Or are things like cap rate, cash on cash return and cash flow more important than the amount of rent you receive?

I see a slow slog downward until we hit the balance point mostly because the rates will remain elevated 6%+ for another year at least.

Rental rates are holding strong, which is promising for investors.

The market here is very strong and competitive- appreciation is at a very high rate at about 5% annually.