While less than 10% of the mortgage industry offers 40-year mortgages, here's something to factor in: they often come in with a rate increase of 20-35 bps.Assume 35 bps.$300k mortgage at 7.25% (30-year): $2,046$300k mortgage at 7.6% (40-year): $1,996Technically, it lowers the monthly, but not by much once factoring in the rate adjustment.

Look, we’d all like to search the internet, find a deal for sale, analyze the property as having a great cash flow at current interest rates, with lots of upside potential in a gentrifying market.  

We do lower rates, and I'm curios if others have run into a "floor price" below which you just get problem guests.

Quintessential coastal PNW with beaches that are among the top rated anywhere. 

If he owes a decent amount on the property, wouldnt the conventional route make him lose whatever interest rate he has?

Also look at those Vrbo and Airbnb calendars and see how full they are and what nightly rates they are getting.Should be easy from here to see if a new property would pencil in or not. 

El-ErianSun, January 10, 2021)) Mostly, I see a hint that it could result in rising interest rates.

FInd a good old school General Contractor and forget these engineers.

What is the interest rate on the mortgage? 

I'd wait this one out until rates lower and you can refi and learn from it to buy better the next time around.