From a purely financial perspective, the optimal solution would be to leave the mortgage in place and simply use the windfall for investment purposes.

The below is pure speculation; I don't work in "loss mitigation" or have any insider scoop on it.With interest rates as low as they have been since 2012 or so, and given where appreciation has been, and the fact that when/if a home sells the title company will require that the lender (plus back interest) be paid off, it's possible that the 'rational' thing to do is let the interest accrue on the assumption/hope that there will still be equity in it at that point when someone dies/divorces/etc and sells. 

By pure dumb luck I haven't had any federal employee clients go into escrow on anything, not all that many federal employees in the east bay.

That way realtors will take you seriously and you'll be able to take action when the right deal comes along.I would look at multi-families that you can house hack and then turn into pure investment properties down the line.

Ideally, you want the property to cash flow after you move out so you can keep it as a pure investment.Once you have some numbers, post them to the forums.

This was purely for fun and fire from the hip weapon. 

You've figured 10% down, but most banks want 25%, if it's a pure investment property.

He's asking purely for financial planning, it won't affect his choice.Thanks in advance.

I suspect purely comparing on the basis of monthly cash flow might be short sighted?

@Ryan Moore Speaking purely from a conforming loan perspective, it is definitely doable.