This could increase interest rate and or down payment.2.

It focuses on the increasing number of real estate investors in Indianapolis and how they're outbidding retail buyers.

That being said, there's no way your tenant will be happy with the increase so you may take that into consideration.

Quote from @Rich Davis: I know there have been posts regarding the ever increasing cost of insurance.  

As rental rates increase, cash flow becomes strongly positive.  

page=LoadVirtualDoc&BookmarkID=6536) that capped annual increases to the Taxable Value of a property to the lower of 5% or Michigan's Cost of Living increase.

Quote from @Lionel Quiambao:  ... and maybe throw in the option for the tenant for more speed at an increased rent to cover the additional payment. 

We plan to remove them all to protect from tax increases on our current primary, but I am afraid that now that the other properties won't have homesteads, we may see skyrocketing tax bills and it will eat into already small cash flow from rental income.Does anyone have advice for how to handle this situation other than just increasing rent?

This would greatly increase the size of your next downpayment.

Each market is different but as a national average, the increasing rates have increased the inventory.