Look for Single family house in the range of $200-$250k.  

That is sufficient to handle normal usage, regardless of the brand of paper used. 

It feels more negotiable than before. 2-3% is the range I see.

My partner and I own a portfolio of STR's here as well as do flips and mainly work with fix and flip investors.Right now in the market we're seeing 50% of sales coming from the $350k-$550k sales price point and another ~25% of sales coming from the $1.8M-$3.5M range.

In terms of your price range there are homes spread out throughout Tucson that can check that box.I am a Realtor in the area and happy to be a resource to you.

Nice places in the $250-350k range then several in the $150-175K range that either look updated or like it needs to be renovated.  

Multiple cabins in the 450-550k range have dropped their prices by 75k after experiencing bidding wars merely 3 months ago.

Prices wont come down enough to justify buying as a rental, rents could be rolling over and interest rates will be range bound for a long time. 

Normally at minimum an appraisal is required to verify the remaining collateral is sufficient.

The area and price range you mention  should go  very  quickly regardless of the time you list the property... when you sell - you can also ask the buyer to provide you with an extended closing date or lease back ( if you need some extra time before needing to move ) .