I've worked a lot in College Station the last 4 years and real estate their has been on the rise.

Buyer's are snapping up whatever they can find assuming prices will rise.  

If and when interest rates rise wouldn't it make my property go down in value?

If interest rates rise significantly banks might start calling these sub2 and wrapped deals due.  

Another question along the same lines as number 1, I've read that you should try to find a rental property in an area that is on the rise, and one that has high rental demand.

Might make more sense to tie that into your rising price too.    

I also operate in Macomb County, and prices have been steadily rising but good deals are still out there it just requires a slightly different approach from what we could use a year or two ago.Also just so you get the right advice.

I surmise the values will continue to rise in the area.I have also looked at Antioch, CA but many of those areas seemed rougher. 

I will let the tenant know "I wish I didn't need to raise the rent, but due to rising costs of keeping our properties in good shape and available to rent we must."

Heat rises and cold falls.