A couple moved in 3 months back, they had some personal issues and apparently have moved out without informing.

“However, consumers took a slightly more pessimistic view on the likely direction of mortgage rates, reflecting the fact that actual mortgage rates have moved upward since the start of the year.

However at any given time liquidating these RE assets if your moving to cash is going to cost you 8 to 20%..  8% sales costs if nothing needs to be done and values are exactly what you state.. 20% or more discount if you have to rehab or market price softens at the time you have to sell.. 

My outstanding loan balance is 163K @ 3.5%I calculated that I'd clear 900/mo after expenses.I was planning to buy my new house for cash, but with the market where I'm moving/buying I'm having to go about 100K over what I was planning, so I'm taking out a 50K loan for that property.

I spent 9 years as a LEO before moving into the private sector.

Have all exterior trash container moved if right next to the house.  

To me, it seems like a big CYA move, which might be necessary depending on the type of people you rent to. 

And, the first trust lien holder is not obligated to move quickly. 

So in theory the rate should move down to 150-200bps at least for them "to survive".Will the Fed do it ?

Let them know if they're not a good fit and you need to move on.5.