Rise Of Income Comes Higher Chance Of Audit:The more you make, the higher chance it is you will be audited, example being if you make $200,000 or more per year your chance of being audited doubles from 0.85% to 1.75% according to the IRS report.

I think that the market could fall all over the US with the rising interest rates.

At the same time, what if interest rates rise to 6.5% in 5 years (not exactly a huge stretch from where they are now)?

Private / hard money rates differ almost entirely based on location, with California seeing the most competitive rates due to lending laws and competition there (coupled with swift rising property values).

I would value add to the person with my experience managing property and with market research that would be placing the investment in an area that is on the cusp of rising rather than already a very hot market.2.

Also, it can't rise more than 2% a year.- Some HELOCs (mine does) allow you to have a fixed-rate draw or two.

Also, as you are looking for the cheapest building in these neighborhoods, you have to understand that there will be a chance of getting in multiple offers and look for few months before finding something.Words of advice: buy before Feb 2017, as the moment the spring market starts, your chances of getting something will decrease, plus with the interest rates on the rise, your purchase power will go down!

What if prices stagnate, but interest rates rise 3%? 

Hopefully rates won't rise too much in one year.  

This will continue as long as stocks keep rising.