When I went to rent the house out, I kept the house fully furnished, which increased the interest.

What changes would you suggest in terms of increasing landlord participation?

I conservatively estimate illegal immigrants are occupying at least 3% of rentals in our country, twice as much as vacation rentals.Supply is low, which increases demand.

It's coming b/c it is going to provide liquidity AND lower investment risk (decreasing cap rates and increasing property valuation). 

With the increase in home prices in Phoenix over the past couple years it is harder to cash flow in any segment.

This increases the property's value and can allow you to charge higher rent, improving your cash flow and the property's appraisal value for refinancing.Rent: Lease out the newly acquired and rehabbed properties, preferably to reliable tenants similar to the family you currently have in your townhouse.

But the city has increased their effort to shut down unpermitted STRs by a lot.

Granted, that matters depending on the investor's strategy and goals.Meanwhile, all this does is increase the work for the supporting professionals with more filings, paperwork, the potentially the 1031's, all for some tax savings in this year. 

When I was buying, concerns were the quality of new construction, the timeline fluctuations and cost increases.

@Chris Martin So, if I am understanding these charts and perhaps your point, its really the credit cards and other revolving plans that have increased?