I think finishing a basement is an easy value add (assuming all the other factors make sense, location, ARV, etc. ) However, if you bought the new build at the price of a similar property with a basement already finished... not sure the equity will be there unless the appreciation/inflation ride goes on...

Buy something else at these inflated prices?

He is worried that since he has to identify properties in the next 45 days and  buy something in this market he may paying inflated prices and lost money when he sells in the future. 

All you need is a lawyer and about $3500 to do that, if my memory from 2012 is correct (adjust for inflation). 

We know inflation is skyrocketing and RE has taken off, New York is a matter of time.

Does the cashier charge you less for your groceries because your wages haven't kept up with inflation?

I think some real estate does really well with inflation.

 Signs of inflation are everywhere. 

The market I live in is extremely hot right now , and houses are selling above asking price (which is already inflated).

@Rick Martin Hey rick as matt mentioned in the Previous Comment if Interest rates rise is the effect of Inflation not the cause does that also Increase Property Prices?