@Jon Ankenbauer you won't be able to keep the land separate from any future construction loan.

Quote from @Vince Scipione: Standard would be an FHA loan for your situation more than likely.

My guess is that our situation is different; different end goals, W2 income, home prices, market conditions, strategies, etc... but I can share my journey and what I look for in my current market along with prices. 

I find a lot of books and articles give the perfect scenario or the absolute horrific situation to get eyeballs.You will not have to perform at a level 10 consistently (10 meaning demanding). 

Your opinions/experience on this situation are greatly appreciated.

If the interest rates go up to around 7% again do the numbers still work for the remainder of the loan? 

keep in mind 2.9 % or really any mortgage in the 4's was a once in a investors lifetime situation.

Want to get a loan for $250k in AZ

I had a similar situation a few years ago, but it was a move across town. 

Maintenance and potential repairs will also require a long-term financial plan and setting aside a contingency fund for such expenses.The steady cash flow, appreciation over time, and tax benefits can make a meaningful difference to your wealth in the long term, especially with the principal paydown on the mortgage.However, if managing the property from a distance feels too burdensome, or if you’d prefer the certainty and flexibility that comes with having less debt (especially given the high mortgage rates), selling and using the $100,000 in equity to reduce your loan for your next home may be the smarter move.