However, I'd advise steering clear of Harris County, particularly in Houston, due to the excessively high taxes.

many HML will call themselves private money lenders to give the illusion of cheaper rates and easier terms.Private money is just that individuals with funds to invest that are Private they dont hold themselves out as in the business of lending.normally this would be friends family or other high net individuals you may already know who want to do deals with you.

Is not it prudent to pay by all cash to avoid high interest rate at this time?

Any advice or responses are much appreciated.On a new build, I’d highly recommend using a gc, too many moving parts (literally) to keep track of, & if you screw something up, it could be a massive disaster. 

That’s a very loaded question, as it’s highly specific to your situation.

The interest rate you were quoted is not high.  

This Mountain Modern condominium has high-end finishes in kitchen and bathrooms including heated floors and custom built-ins in the living room.

Why not just go to a bank or private lender rather than play with that very high interest money?

There is a high demand for rentals and not nearly enough inventory.

Try looking at it a slightly different way with some quick math:$900,000 sales price$22,500 cost of purchase (appraisal, points, lender fees, title fees, etc - 2.5%)$90,000 cost of sale (10% commissions, closing costs, buyer credits)$64,000 carrying costs (6 months at 10%)$25,000 additional carrying costs (6 months taxes, utilities, HOA, misc)$100,000 rehab cost (the number used above)$68,500 profit = $530,000 max allowable offer.Some numbers may be a bit high, others may be a bit low.