We built a 4B, IP in Muswellbrook a few years ago. It's never been empty and the rent has risen very rapidly. Wish I had a couple more……

Yes as much as it hurts, its still probably worth it.
If you keep the place tidy and in good repair it helps when you want to bump the rent up.
The joys of owning an older property.
If they continue to find minor faults then suggest they move to a more suitable place of a higher standard. They will hopefully get the hint and relax a bit.
As for the PM, hang in there. I'm convinced most take on too many IP's and spend most of their time 'putting out fires' as one informed me. Ask for frequent updates / txts/ emails. Do you have a lots of choice in your area?

Keep away from Windale, Gateshead and Raymond Terrace mainly.  Lower income and Housing Commission areas with subsequent issues.
Hard to go wrong in most areas with a huge rental demand.

Not for me…unreferenced, repetitive, vague. 

Hi MJ,  I would suggest you take your Mum to Centrelink and get things in writing regarding your Nan going into and aged care facility. The laws have changed somewhat and are complex. The house is unlikely to be sold under market value. ACF's have seen it all and the laws are fairly specific. Your dealing with a private company (mostly) and they want their cash.  People attempted to bypass the sale by having a relative move in with them. That's still ok however the relative has to have lived with them for 5 years.

Hi Tony, plenty of pros and cons on self managing.
Just a few thoughts. If you self manage then you will have to be very comfortable in increasing the rent when appropriate and be ready to be challenged by the tenant. ( and they will, especially experienced tenants)
Do you have the time or want to attend a rental tribunal when a tenant challenges a rise or other issue?
How will you know what market value is for your area?
Will you mind that the tenant can contact you 24/7. For any issue they see relevant.
Do have time to organise tradesman when required?
Management fees are tax deductible.
You probably wont have access to the Tenants database that property managers do.  How will you screen prospective tenants?

Its all  possible but I've had enough hassles with tenants / storm damage to property and other time consuming stuff to realise its not for me. So best of luck whatever you decide.

I'm unsure how much interest rates will go up as it depends on so many factors and all of them are out of our hands anyway.
I did a quick calculation of official interest rates for the preceding 50 years and the mean is 8.05 % so were still off the mean by several points. Not that you are, but its a sign of an inexperienced investor or newby who worries too much about interest rates. They didn't stay at 3 or 4% for ever nor did they at 17%.
Good question regarding increasing rent. There seems to be no formula ( that I'm aware) After talking to many people about this I  concluded that you cant put up the rent just because interest rates have risen. Sure plenty do, however in a tight rental market people are less likely to complain.
Its far better to increase the rent yearly or half yearly in conservative but fair increments then set and forget. I was guilty of the latter and am now paying for it.  Never again.
I have recently increased the rent on 1 property by 10% which was not unreasonable and still below market equivalent. My PM has suggested that subsequent increases should be less, so the tenant does not have sufficient grounds to complain to the tribunal. Its a risk you have to take and consider all factors. She also suggested that significant rent increases are seen to be more reasonable by the rental tribunal (NSW) if there has been some substantial improvement to the property.
Hope this helps. So at the end of the day I have gone for 6 monthly rental reviews, regardless of interest rates. Something I should have done from day one. I've learnt.

Any hints on the postcode? Mining town maybe? Come on the suspense is killing me…..

Hi Cathy. I sincerely hope you haven't signed anything. I agree with DWolf entirely.
Alarm bells should ring loudly when someone cold calls …for anything, let alone a major investment decision. (I love my silent number )
Theres' no free lunch and their product / package may be fine, however they are charging you a premium for the privilege of finding the property and 'doing the deal'. Something you could do yourself with a bit of direction and self education.
I love the line about fear….how patronising of them. We have fear for a reason and one of them is to run away from these spruikers as fast as you can.
Theres absolutely no hurry in real estate when your starting out, take your time and self educate.
Holding cost of $20k????  are they serious? No rental income for 5-6 mths and they want you to pay $800 ish week  while you wait for  their unregistered land to become available to build.?
RUN…….

Hi Luey, the properties were owned by one person and I believe were sold as a package of some kind. ( according to Steve on one of his DVD's)