On the presumption it is a personal house, I would say to do it as soon as you can afford it, presuming you are looking to stay in the same area you are at for at least several years.  

we are saying the same thing I agree..

They have gone up substantially, but not at the same pace as home prices.

I came here to say the exact same thing everyone else already said. 

There is nothing wrong with FHA, but most real estate pros would agree that if you are trying to get a seller to accept an offer when there are other competing offers, a conventional loan offer is going to usually be more favorable than an FHA offer at the same price.   

No one has more "skin in the game" than a PMC as they have to deal with the property every day until an owner sells or fires them.Also recommend finding your own Inspector and not one referred by an agent.

I am looking for a company that will fill vacancies in less than 30 days, and I'm interested to know how long some of your tenants have stayed in your rentals for those who have properties in Kokomo.

But if you are committed to purchase, a 2/2 would prevail over a 2/1, the price difference has to be nominal and now you might attract a different user like tow couples or adult friends that don't want to share a bathroom vs a young family that the kids are okay to use the same bathroom as the parents. 

It's my only investment property purchase and it has cash flowed since day 1, not much appreciation though.