The reason I ask is that sometimes when an older appliance is getting ready to fail, you can see electrical issues with breakers or with a spike in electrical cost/usage.

Here is a new article out today, Dec 6, in regard to some places to look for foreclosure properties. Enjoy. Here's a look at 12 housing markets where foreclosure filings are surging. The October foreclosure data, from...

It's a nice little starter home or downsizing option, or just an affordable home in an area that has seen a spike in housing prices.

will the rate spike higher or will it freeze on the level achieved?)

And yeah it hasn't seen the big price spikes like some of the city neighborhoods have so cash flow is still plentiful there. 

I was told that I could only borrow $7600 due to my DTI ratio and the worst case scenario of the interest rate spiking to I believe 16%.

And I'd have to find other IRS write-offs to cover the annual rental profits.Some complicating variables to note: Since it's a beach house, the value has spiked far faster than the estimated worth of the other homes, a reality that surely will continue, since the coastline is shrinking, not growing.

You aren't the only one thinking this way; I've actually seen a spike in cash out refinances as rates have risen.

The problem now is that interest rates have spiked, and might actually price me out of any other loan for the next few months (in terms of DTI ratios).

Held flat for a while then spiked after Halloween.