I had owner finance $3,000,000 dollars, 4% interest rate, 10 year term.

Shana - first place to start is having the conversations with people you know in the real estate business and see what advice they have to offer.

And what rates are people paying? 

My interest rate was just over 3 percent. 

After sitting on the sidelines trying to get into real estate investing for several years, I have the opportunity to purchase a 1 bed, 1.5 bath home in a desirable part of the California desert.The purchase price is $299,000 with a 7.3% interest rate and 3% down.

Moreover, new built homes are underpriced with so many incentives like rate buydowns, flex cash and cash off the purchase price.

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!

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

How is your occupancy rate?

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