We have a PM in place.We want an Interest only or ARM to LOWER our monthly payment for 1 year and sell next spring -- when their lease is up.We thought about selling now but it's appreciating so much we want to wait.The problem is due to job transfer my husband's credit took a hit and mine is ok/good.

And you'll never find a house for that price in the Heights.I can't check the comps without an address, but that zip code is north of I-10, which is a part of Katy where the rents tend to be lower than the areas south of I-10.

I am looking for lower turnover tenants with solid cashflow but am focused more on building equity and minimizing risk.

I made offer lower than market but still made sense on paper.To answer you question, yes.............you do buy and sell at same time............if the deal makes sense.Here is a good example, I can buy a multi that needs work at a low price, fix, and flip, or hold if market is going up.Do investors in the stock market buy and sell at the same time? 

I'd hate to terminate only to find out that I can't get more and then have the uncertainty of a new renter and new rent payment struggle.This is currently a lower-income neighborhood with a potential to gentrify (or die off depending on who you ask) over the upcoming 5 to 10 years due to the i70 cut and cover.

It is a hot market here, anything lower than 750K sell the next day, even without that great location. 

Then being lowered to 1495.

You can try to negotiate a lower price (although you can't force them to drop the price), but you have a way out of the contract on your appraisal contingency if they refuse to lower. 

You're asking the right kind of questions.My understanding of the Tax Reform act is that the interest deduction limitation is $750k for a first + second home.With that said, it may be advantageous to purchase the property as a second home, then place it in service as an investment to capture the advantage of a lower rate and deductibility.The catch is that you'll have to keep the property in your name vs. holding title in the name of an entity.

Having lower payments up front could help you make more if that fits your goals of trying to sell it the first couple of years.