This was true before the material inflation, but more so now that the material inflation has cause the garage ADU conversion to increase in costs significantly.Before proceeding with the garage ADU conversion make sure you can find multiple comps that show that it is a value add proposition. 

The market right now where I live is heavily inflated and prices have sky-rocketed.

Just because someone is 88 years old doesn't mean they are immune from inflation.

Inflation will drive the rates up soon. 

Inflation paired with wildly unbalanced buy/sell demand honestly makes me believe they could continue rising.

The rate of inflation over the past year jumped to 4.2% from 2.6% in the prior month — the highest level since 2008.

A lot of these companies like to inflate the numbers to make it look like it cash flows more.

Part of my initial plan would be the equity / bond markets to help preserve my capital, offset inflation and provide me with a yearly withdrawal rate that would pay for my lifestyle.I am also considering where I can go / learn / invest in to put some of this capital to use within the RE world.

The numbers on potential immediate return that I've been given by the other parties involved may be slightly inflated. 

Purchasing more properties using cheap fixed debt as a hedge against inflation and a way to gain more depreciable basis.3.