Everything I've read shows PA peaked in 2022 and has dropped 5-6% since then. 

You increase rents every year rents aren’t dropping.

If I buy a house for $400k, and the market drops and the house is now worth $300k, I am under water.

Also, the banks that did approve me told me that they could only use the rental income from the other units (75% of it) for an FHA loan, not a conventional with 5% down (which was my goal to avoid upfront PMI and have it automatically drop off at 78% LTV).

@Itay Heled Last year, Furnished Finder published a document called "the state of mid term rentals" and it showed that the users of FF want studios, 1 bed and 2 bed proerties. the demand for 3-4 bedrooms significantly drop. 

Quote from @Henry Clark: Dropped off at about page 5 a few days ago.  

Just drop me a line or call me.

If rates drop in the future, refinancing again could lower your payment, but it’s good to make sure the numbers work now just in case.

We just discovered a crack in the concrete slab foundation that is a borderline major problem:- It is a vertical crack about 1/8 inch wide that is at least 9ft long, which is causing a 3/4 inch drop in the flooring and some evidence of old (luckily) limited moisture and termite intrusion. - BUT, it also appears old and probably a symptom of the original house settling.

Then it dropped to like 30% of its original value.