Assuming the bank has the loan on their balance sheet (not resold), would they want to call it due if the interest rates only went up by 1.5% since the time of closing? 

They may have just paid the entire balance that accrued at one time.

Prices did seem better than DFW, but about 5 years ago when it was on my radar, I never found an area where I thought there was good balance. 

Here it would be 25% down ($275k)A balance of $825k at 7% (or higher) $5,490/mo, figure $250/mo insurance, $500/mo property taxes $6,250/mo. 

I've found that there are markets that have a balance of decent cashflow and decent appreciation and that's the type of market I eventually decided to invest in.I'm not too familiar with the different markets down there but I'd highly recommend looking into Candor Realty. 

Days on market is about 2 months, slightly better than earlier this year but relatively speaking, it's still a more balanced market compared to rest of the Bay Area.

Definitely recommend the seller financed buydown as if you refinance whatever the remaining balance from the buydown is can be used to pay down the principal balance of your loan. 

Hopefully it balances out and ends up net positive. 

I have about 150k equity in my home and have $215k balance on my mortgage.

Eventually, you’ll look back and appreciate that you took the leap, even if it felt a bit off-kilter at first, kind of like trying to balance on a beam after a strong cup of coffee.