I'm using 3% based on inflation percentage which is usually between 2-4% I believe. 

Builder creating speculation and artificial inflation.2.

You start with one and build up.So our average property value is about $100k (fair market value, we don't inflate our prices and any provider worth your time shouldn't either) and our average rent is $950 per month. 

I am worried about inflation, the last couple of years I've just parked it in my savings account, which is obviously just losing buying power year after year due to inflation.

You will find plenty of other people in your exact position - CA, NY, or HI residents who need to look outside their own inflated markets.

If we get lots of inflation though, the buy and holders will likely win out.

Charlie Campanella I was in your shoes a decade ago (adjusted for inflation).

It's usually not much, about the inflation rate for the previous year... sometimes less.

You would evaluate your holding costs at the much cheaper FHA 203k interest rate or conventional loan interest rate, if you wanted you could inflate your return by assuming you would have paid $x in rent per month as well other than that it will be pretty similar.

Another opportunity for value add in a very inflated market.