If I were in your shoes I would put together the strongest argument possible for why the home is worth $275K.

In fact after awhile it will be like breathing or tying your shoes every day. 

I would ask a real estate agent to send me all the listings of properties I could qualify for and I would get the agent to take me out to see 3-5 at a time until I found the one.If I were in your shoes, I would either buy a 'too big house' with conventional or FHA financing and rent spare bedrooms to professionals for $500-900/bedroom (as I've done in the past with my 5 BR 3BA) or I would buy a 2-4 unit multi-unit house and live in one and rent out the others.

It's your decision, but I would cash-in if I were in your shoes.  

You will need a competent on the ground team to watch over your investments, and I would want to meet that team in person if I were in your shoes.

If I were in your shoes would I be mad?...

A good portion of these people will get burned by scenarios like you mention, which is real-life in the shoes of a landlord with multiple units.Somehow these things always seem to come in waves for me too.

This doesn't seem to as much of a Problem in the Phoenix Metro Area but  . . .US Housing Market In Freefall As New Buyers Can't Afford A HomeNeedless to say, it is very troubling that Americans are unable to afford home purchases with the 30 year mortgage at just 4.5%, and suggests that even if inflation picks up, the Fed may have no choice but to keep rates flat to avoid a housing market crash.Still, despite the ongoing slowdown, or perhaps adding to it, the median existing-home price rose once again, hitting $247,500, up 2.8% from January 2018 ($240,800).

You'll find a lot of great mentors as well as people in the same shoes. 

I'm thinking Cutty drunk out of a brogue shoe.