Thanks @Chris Boyd and Account Closed for your input!

The guy you definitely need to talk to is @Chris Mason from Bay Equity Home Loans.

Thanks @Chris Mason, @Jameson Kaye and @John Fabros.  

Chris Chico is the man (I wasn't paid to say that).

@Russell Brazil  yes, I definitely want to lock in a 30 year as soon as I can.

@Chris Eaker: Here is the link to @Brandon Turner's 4 square method video and worksheet.

Thanks Chris, but wouldn't I have to get a letter of explanation and have a huge down payment (more than 25%) as my last year's tax return does not show the raise in my w2 income?

Chris picked up a good rental for now  with a nice appreciation play in the future.

Thanks @Russell Brazil.

@Russell Brazil  lots of land leases in Hawaii.... was not aware that was the case in your area..one oddity in the NW west is how Timber is treated as real property while its standing and is personal property after it is severed and harvested.So you can buy and sell timber deeds .. you can 1031 timber deeds.. and this is just the standing timber does not effect the land underneath.