My homestead rises in 10% increments every year which to me, feels like legal theft.  

I work in the construction industry as a electrical engineer designing high rise apartment building in chicago il.

It's kinda scary because in 2-3 years, interest rates will rise and then more people will have trouble buying.On the other hand, I have heard that now 3% down payment loans are coming back and it won't be long until 0% down loans will be available again.

The issue for me right now is the market for real estate is back on an up swing so prices are really on the rise.

However, assume that your equity rises 20% annualized over the next 3 years which is a very real possibility if you are leveraged 4x (meaning you have a loan that has 80% LTV).  

7 3/4" MAX rise - 10" MIN tread

Rents will have to rise, or I will have to put more money down if I want immediate cash flow on rentals here in the city. 

Yes, pricing will be a little high but after sales continue to rise and demand is there, you would have gotten schedule A and everyone else coming in later would be paying 3-6% more than you which therefore raises your comps.

Please note that the prime rate will possibly raise .25-.50% there is a meeting in the end of July to address the raise, so you may want to brace and account for such a rise in your decision making

Many reading this will argue that FHA loans give people a chance to rise above poverty.