There are logistical reasons whey other lenders aren't here including the recording process, Puerto Rico's bond rating and lack of MLS / Comps.  

Mortgage rates are driven by the capital market and basically follow the bond market, specifically 10 year US treasury with a premium, historically about 1,7%.Yesterday the 10yT fell to 3.9% and I have seen 5.99% 30y fixed rates with a local bank in here Milwaukee (that is still an inflated 2% premium), so 5.7% would be historically normal based on a 1.7% premium, even without the 10YT going any lower.Here is why.If the 10yT offers lower returns, more investors want to buy mortgage-backed securities instead to get higher returns (about 1.7% higher), as a consequence lowering the returns on those as well.

You pay taxes on 401k withdrawals whether you are 40 or 60, so the 10% penalty you get is what you have to factor in with your decision.It's impossible to say whether stocks/bonds in your 401k or real estate that you acquire will do better over the long haul.

This figure includes the construction of the building but excludes land acquisition, permits, and other associated costs.Cost per Door (Unit)The cost per door, or per unit, in affordable housing projects can also vary widely based on the specifics of the project.Average Cost per Unit: Recent affordable apartment buildings built using public funds, such as Metro housing bond dollars, have cost between $412,000 and $522,000 per unit.

No real risk beyond just the risk that goes with having any stocks or bonds. 

I also get baby bonding through CA, which is paid family leave, and I plan to use this strategically to spend more time at home.When I buy the starter home, based on my calculations, I'd be saving around $6-7k per month.

I know in Washington state a home owner can do their own work including electrical and plumbing, but as you pointed out has to live in the property for 1 year after completion.If you get licensed as a contractor (in WA state it takes some paperwork, filing fee and insurance/ bond, no test, no experience etc.. )  Then you do the work under you contractors license and no holding period needed. 

.: @Chris SeveneyI've posted on other threads - i'm not really changing my strategy in response to the macro changes, just accepting less cash flow as long as I get the other benefits. mathematically speaking this is given as spread between bond and appreciation/cash flow has reduced LOL you would be okay as you are veteran on this lol

Trying to explore if there are still pockets in Nova where the returns make sense, given the high prices.Nova is extremely low risk, which is why cap rates are so low, the issue I honestly see with nova right now is the cap rates are often times below what you could get in a bond, and leverage is hurting you right now, I wouldn’t say I Would recommend not investing in nova or investing in high risk market, but personally I’d rather get something in the 5-7 cap rate range and take on slightly more risk to do so. 

Balloons coming due with higher interest rates, China market, China production, Manufacturing production moving back to the US, Worker shortages, Workert pay hikes, Ukraine/Russia food and fertilizer misses, Oil prices increasing due to the OPEC Q1 production curtailments in place, Houthi issues, Panama Canal Water issues, Illegal immigration impact (buy one of those office buildings and rent for $10mm per year for Illegal housing, take advantage) social benefits required, Climate change believe it or not- Buy or sell into that thought process,  US politics, Baby boomers leaving workforce and needing more benefits, Baby Boomers moving from Stocks to Bonds,  etc.I agree things will get worse, but that means more investing opportunities.