The inflated market is really throwing me for a loop as I'm not finding anything reasonable, even in more rural non-hip areas.

This is essentially using OPM (Other People's Money) to build wealth over time.Appreciation: Appreciation Over time, real estate properties tend to appreciate, or go up in value, at about the same rate as inflation (3-4%).

And almost as importantly, real estate ownership always ends up at least tracking with inflation.

I am an investor & agent in Philadelphia, and unless you know the submarket you are investing in very well, there is a good chance the listing agent / seller has this at an inflated valuation.

The rate of return isn't great, but its just a place to park money and not lose so much value to inflation while it sits.

Now, how would it effect the housing market, depress prices, or further inflate prices?

That being said, interest rates have been reasonable during the past 15 years, but I fear inflation is going to wreak havoc on rates in the near future. 

If purchased at 1 million with 25% down at 5% rate the monthly payment is $4,026.I have enough cash flow from my current rental properties to live off of and my wife and I still work part time and will continue to do so.I was thinking of purchasing this property as a way to grow my wealth as well as hedge inflation.

Low supply, high demand, inflated prices.

And that's assuming the unit's fan had enough power to overcome the sealed registers to a level where it could inflate and burst the flexible ducts.