My gut feel is that in many areas the "inflated" housing price portion due to easy loan qualification (low doc, stated income, bad credit, etc.) has been squeezed out and that prices now reflect what people will pay who have and are willing to pay all cash.

However bad years even out the yield so that a 4% average return is most likely scenario.Many people have profited in the past from land price inflation.

I would place $750K in low LTV private mortgage loans yielding 12% and up and $750K in income producing real estate with short term leases than can be adjusted quickly should high inflation become a reality.

Not sure what year they used as their =100 baseline, but the takeaway for me is the country to country comparison.Here Canadian Teranet data (similar to the US Case-Shiller index using matched-pair sales of single family homes) shows house prices have risen at a much faster rate than Canadian per-capita GDP, per-capita income, rents, or inflation.

Debt is great with inflation.

This may allow you to increase your rent more than inflation and capture higher returns above 1%.

As the government continues to print more money - inflation will be going up and your buying power will decrease.

Come on, a seller never attempted to inflate rents?

This will work fine as long as the economy is humming along and it props up inflation along with it.

The fact that you have a loan in your name is the problem, because that leads to a certain debt payment due every month that is inflating your DTI.