Phoenix was a hot market several years back, but prices have risen, and now investors are looking to other areas such as Chicago, IL and Birmingham, AL.  

Rates have risen a bit this year as investors are catching on to how amazing a loan product it is and banks are starting to cut back a bit, but its still a magical loan program.The property typically has to be 50 miles from your residence (doesn't matter whether you rent or own that residence though), and has to be a vacation home in nature (this is vague I know but its a pretty low hurdle - my understanding is it just eliminates properties that really don't make sense as vacation homes, such as fourplexes).

The 10 year treasury has steadily decreased in that time.

But if that property goes up to $200,000 in value and the rent has only risen to $1,200 a month, I have a Cap Rate of 3.6%, $7,200/$200,000. 

Normally, you spend this reserve slowly and steadily: take about 3% of it every year.

I need to keep long-term tenants paying rent steadily in the neighborhoods I operate in.

Originally posted by @Gordon Starr:Hey everyone,I am a sole proprietor with a steadily expanding buy and hold portfolio.

Or you might get more comfortable once it's been steadily rented and decide to take out a HELOC to get some cash back out so you can start on the next one sooner. 

The CMA I got that a year ago when I was purchasing the property.And property values have risen significantly since then, I think I got a really high CMA and believed it.

Vacancies are extremely low and rents have risen by 25% over the past 3 years.