When I sell a property with owner financing I want an interest rate of 2-6 points higher than the Lowest commercial rates.  

With an assumed loan providing a lower interest rate and accelerated amortization, the income generated from house hacking can be leveraged to pay down the mortgage principal even faster, or the extra cash could be saved to be used towards your next down payment!

Everything was going fine until he realized he couldn't refinance in this current interest rate environment.

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?

To get elevated rates on this one, we felt the interior needed a cosmetic face lift.

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.