I have an opportunity that would eventually become our primary residence.

I am looking in the Bryson City, NC area as it has a lot of outdoor adventure opportunities, and seems to be a more reasonable price point than some of the other towns around the Smokies.

Depending on cost and effort to do this, it may present an opportunity in San Jose.  

There was no change in the purchase price due to this issue.

There are lots opportunities in easy bay township or downtown Condos (where str is allowed.) direct west of TC has lots str experience opportunities (water front/ farm house , wineries), direct east close to Williamsburg has great opportunities even for long term summer rental to the horse show participant (June to Sep).

Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders.

Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders.

If you're in the Mass area, your market is priced crazy. 

I also would consider the opportunity cost - could you invest that cash in a different investment at a higher yield than 7% - say an income fund, a note partial, or something similar, and then use the distributions from that investment to make principal payments on the mortgage?

The loan amount is $220000, and the estimated Zillow price for the home is $600k.