So, in a PN environment, let's say with minimal risk of default and delinquency what we would look to is the investment horizon (term) relative to the loan term or propensity to prepay.  

@Roxie Tong I look at REI with a long term horizon.

Hello all, I am a young (21 y/o) investor from the Austin area looking to broaden my horizons.

Expand your horizons!

I have wholesale deals, seller financing options, and lease to buy on the horizon.

Also would you suggest to take a 5 year ARM instead of 30% fix as the investment horizon is less than 5 years.

Also, I got to the point where the banks wouldn't do the loans for me any more.Now, I'm seeing my next cheese-move on the horizon and trying to prepare for it before it happens.

With a 15+ year time horizon, your focus should not be on speculating which markets will appreciate faster or slower - that is very difficult to predict over such a long period and markets that are expected to be hot in the next few years may fizzle out 10-15 years from now.Good luck with your endeavors!

The answer in part depends upon your time horizon.  

However, people generally have a shorter time horizon as they age and thus less tolerance for risk.