The point is, if you believe that 'hyper inflation' is around the corner then your best bet is to short the US Dollar. 

The county/city zoning board has said this unit is not an issue and is grandfathered in, but he's worried about the more stringent FHA appraisal/inspection3) Buyer "skin in the game" - doesn't want to be left holding the property again as this has happened to him at least twice on previous land-contract/CFD arrangements4) Ability for buyer to acquire traditional financing at balloon5) Effective total cash to the seller is a primary driverWe submitted an offer that solves all these problems:Property A:Purchase price: 360k using FHA loan, owner-occupiedProperty B:Purchase price: 305k, 0% down, 25 yr amortization, 5 yr balloon, 4% interest rateNote + mortgage arrangement with professional loan servicing/escrowAssuming a 9% annual return in the stock market, this arrangement is equal in total cash to seller (including accounting for inflation,etc).

So we set that max credit line (80% LTV) based off these inflated prices, when the market turns we'll just write a check out of our credit line towards the next purchase. 

Are trying to inflate company’s income for lending purpose or to meet other debt covenant requirement by doing so? 

I was listening to a podcast where the guest said something along the lines of we're getting taxed from both ends - higher taxes and also on the back end due to money printing inflation is a form of tax we're paying as well. 

Also, make sure to factor in the implications of future inflation on your assets. 

My wife and I ReFi'd into one based on these inflated values, so we're ready for when the market turns. 

I am not sure 5% is the right number given that inflation is generally 2-3%.

Buy 3  150k properties with 50k down or 1 for 150k. 3% inflation the 150k property goes up $4500 per year while the leveraged properties go up $13500 per year.

As long as it appreciates at the rate of inflation, I should be fine.