I've started learning about notes, but that just doesn't sound super exciting either (maybe when I'm older and am looking for more predictable income).  

I have two options with a bank on loan terms that I am deciding on.

1) 15 year AM, 3 year balloon at 6% interest.

2) 15 Year AM, complete 15 year term with resets every 3 year at prime rate + 2.75%.

I am fine with ...

I'm curious haha =-)extreme bifurcationHere's a sample for you: “The market is predicting extreme bifurcation as the capital flight to quality creates a greater separation between the trophy and less desirable assets.

Also, look at the statistics for population growth versus number of new homes built -- simple supply and demand if you know such figures is always the best predictive.

Condos while a PIA in alot of ways, are much more predictable with repairs. 

If you know your market and do the right repairs to the home you can predict where your cost will go in repairs and how likely it is to turnover.

Is there a predictable relationship between more available funds per month and increased borrowing ability?

No one can predict a crash. 

Nobody knows what will come two years from now, but there is a better chance at predicting what will happen 4 or 5 months from now. 

While no one can accurately predict the interest rate, if I have to guess, it's going to go up, so why not just get a loan now?