That seems odd.

The human race has historically been poor at predicting future, so it's wise to prepare for multiple scenarios.Mortgage rates in 2025 may decrease slightly if inflation stabilizes and the Federal Reserve eases rates, though they are unlikely to return to pre-pandemic lows.

It does seem odd they would list a reference that they didn't speak to previously. 

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

My thought is that I could reinvest this money into a few other rentals in better markets to gain better cash flow.One kicker of the equation is that I have the loan on the property at 3.1% and since 2018, inflation has been much greater than the loan interest, making me hesitant to give up such a good rate.My goal is increasing cash flow with my investment properties so that I can turn this into a full-time gig.

Most people don't sell an STR that is making them a ton of money so odds are it could look better, although they could be selling it for other reasons.

You said: "This seems like an odd strategy - purposefully invest in an asset that loses value, with the hope that it will regain value to save a little on taxes... 

This is why many buyers choose to pay cash even if they don't have to as they want their cash to be invested indeed, especially given the current inflation.

The contractor will give you better pricing the more you use them, some GCs increase their price, but those are the ones you would like to not use (side note, of course with inflation you need to pay your people right, but it needs to be reasonable).

While I usually think people have the best intentions, as someone working with you for the first time, it is truly hard not to have the thought cross my mind that the pro forma provided by Jennifer Lucero was inflated by Southern Impression Homes simply to make the sale.