We also found this on lake front property where the property taxes are 'inflated' by the lake frontage regardless of the home value.

They did this to slash inflation and it did work its an example what can happen if things begin to get crazy in the economy.

Thank you Joel, your post gives me a new perspective into my inflated real estate market.

The sim also assumes 2% for closing costs, and also 2% inflation (applied to everything except mortgage payment of course)Scenario 1 - keeping the financing in place until there are enough properties that when paid off will meet the cash flow goal.

It seems as though these bars are bullet proof to inflation.

Keeping some liquidity on hand is good and allows you to jump on good investments, but you're implicitly paying an opportunity cost for your money, and at the very least, your cash is eroding at the rate of inflation (historically around 3% a year).

His loans are variable rate determined by the feds stated rate of inflation.

Commercial lenders are not going to be swayed by forecasts of 5% year-over-year inflation, they will want to know the property still holds its head above water if there is a 20% correction in property values or a 5-10% increase in vacancy.

Our problem is inflated assessed values driving property taxes beyond reality.

Maintenance seems to be assumed to remain constant, but over time the expense increases with inflation for everything.