Now having said this, lease option structured like this works only for desirable neighborhoods where houses are selling or appreciating proportional to inflation.

Yes there seems to be more demand on the entitlement system (hey people need a raise to keep pace with inflation right?

It's an inverse relationship, if rents are going down (remember I am in Houston, good economy) it's because people are going to be buying houses again, which inflates the value of the holdings so we can sell if we need.

Hardly.Jon Holdman and William Brace that was probably because inflation in the early 80% was as high as 15%!!

Inflated rents can be a sign of something wrong elsewhere, and one should never forecast using inflated future values.And yes, it is a good idea to talk to several property managers for a better idea of what current markets rents are.

We are also interested in mobile home parks and commercial properties.I agree with others on the postings and podcasts, in that if you look at the broad economic future for our country, and for whichever state you live in, it is a certainty that the Fed will continue to print money to distort the paper and other markets and that *actual* inflation will continue to rise.

The original issue was brought up by the ever ballooning prices we had some years ago leaving the market with highly over inflated values and lenders with loans that they ended up foreclosing on and taking a huge loss on.At that point the government sponsored entities, Fannie, Freddie, Gennie Mae, and also FHA and UDSA revised their guidelines to say no financing available for flips with large market increases when the rehab costs cant justify the price increase.

It will give you refi options at the real mtg balance, not an inflated one.

It is on the upswing but has not inflated like other markets in the country.

Also, unless we go through a period of negative inflation, the mortgage balance will have devalued over time due to inflation.