Make your buy criteria very strict as the market softens and increase holding costs. 

With prices softening a bit and interest rates still at crazy lows, it's not a bad time to buy. 

Got no furnaces, central air, water softeners, snow removal, hail insurance, Income taxes? 

For example what if you used a 15 year loan for 3 years and then refinanced into a 30 year loan at 6% (assuming rates have softened by then).

This is largely due to the accrual convention.When evaluating an RE investment, the first factors are rent-to-price ie cap rate, condition of property, rent market eg location, are rents softening?

Even though the rental market has softened a bit as of late.  

I'd say if you are buying it below market value and it is an area that has seen steady growth over time then generally you should be ok, but at this time in the cycle the idea is to be under leveraged to ride out potential flattening and softening of the market.

The rental demand is strong, and home prices have softened quite a bit.

Most owners are stetting on loads of equity (on average almost 70% equity) and the rest is financed with a 3% interest rate.If you are right and prices soften in 2023, how much will that reduce your monthly payment?

The time to sell is not now with the markets softening.