Get a quote from 3 commercial lenders and compare not just the rates and points, but also the terms.2. 

Hard money lenders are typically companies/seasoned lenders who do mass quantities with steeper rates and lend to strangers.

It can't be as simple as using 15.9% as a compounding interest rate over 5 years, can it?

It's clear that the Feds relentless drive towards higher interest rates are not having any effect on demand on Massachusetts market.

The tenant doesn't own anything until the option is exercised and they actually buy the property.Owner financing is the owner acting as the bank with a promissory note with the terms of payment (principal amount, interest rate, number of months).

Purchase price $170K25% down: 42,500127,500 Financed over 30yrs @ 5.250 (Of course, yesterday the feds rose the interest rates.)Out Of pocket: $51,000 (Includes closing costs($10,000) and down payment.)Expenses: (Month)Mortgage: $704 @5.25%Taxes: $416Sewer:$150Insurance: $83.50Oil Heat: $50Misc: $100Total: $1,503.50Income:Unit 1 : $1000Unit 2 : $875Unit 3 : $800Total : $2,675Yearly:Income $32,100Expense: $18,042Total made after expenses: for the year $14,058Now for the amount i'm putting down would you consider this a good or bad deal?

https://www.biggerpockets.com/hardmoneylendersHML tend to look at the deal rather than the individual but with no expereince expect a high interest rate think 10-12%. 

but then you would cash out refinance... at a higher interest rate? 

Go home and call all of your credit cars and ask them to lower your interest rate and raise your credit limit".

With interest rates rising long term, is it good for rental property owners?