I've worn three hats in the seller financing world (as a property buyer, as a property seller offering terms, and as an investor that buys seller financed note). 

There is another house about two blocks over that I have the opportunity to buy off market under market value.

Can someone explain something about the buy, borrow, die concept of avoiding income taxes? 

Why would someone buy now and make little money for the chance that the rates will adjust later?

My thoughts are current housing supply + high rates + high home prices in OR are restricting our options and liquidating the brokerage to pay off the townhouse = $400k asset + $2,400 cash flow that we could then use to leverage or save into buying another property outright or scale into 4 plex and use the rent to pay down that mortgage too.

@Fabio Cattolico"if I could get an out of state property for a great price and the numbers seem promising, wouldn't it be good to start off like that if I'm in a place where buying is unaffordable?"

The buy in would be very flexible terms.

If you aren’t saving the money up to buy another property chances are nothing will pay a higher rate than paying it towards your mortgage.

(The power company in MN will offer you a chance to buy the warranty after the furnace/ac is broken and come back the next day to fix for free.)

I feel as though your buy box puts you in a position for more flexibility.