@Brian Johnson thank you- the traditional process of financing after (or before) 6 months using a cash out Refi is clear to me and I have all the costs. 

Success is a process, failure is a choice

My lender is giving me the choice between a higher interest rate with a closing cost credit of around $600 or a lower interest rate with no closing cost credit. 

If not, is a traditional mortgage an option at all for the short sale? 

Manayunk/Roxborough has been my first choice for a while but a concern I have heard constantly has to do with the taxes associated with owning in the city versus these other locations.  

Success is a process, failure is a choice

@Rick Pozos Nope, I didn't at the time I wrote the post bc I'm not a traditional agent.

And if you have a spouse and/or children you'll probably  also want to be able to leave them an inheritance.When researching other, more traditional retirement models, it might be helpful to view rental income as a type of pension.  

Traditional 30 year fixed mortgage?

Success is a process, failure is a choice