With today's inflation a 5% increase, if you are 15 -20% below market, is certainly reasonable IMHO.

Once I bring each apartment up to market rate, I automatically increase 3.25% per year to keep up with inflation and rising costs for doing business.

Cash deals work best, but of course the reason homebuyers are willing to pay inflated lease option prices is because they have no money, bad credit, or both.

Inflation cometh with a fury!  

-My concern with renovating is that this is undoubtedly an inflated sellers market across the board, so bad it is not just real estate. - My concern with building new, is not being able to spend all day onsite to manage. only being able to go on site at the end of the day after work to see what was completed and to what quality. 

Prices and Market in this area have been inflated like most everywhere else however we are right outside of Charlotte so it brings in a lot. 

Now, inflation and scarcity of materials is making even that a difficult play. 

Cash Out RefinancePros: Extra 5% mentioned above, somewhat more liquid, its 'mine' if the housing market does crash, keeping slight bit more leverage                    Cons: current inflation, 'higher' mortgage payment, closing costs each time cashing out. 

Increased money supply, low rates, housing supply shortages, institutional housing investments, inflation, +++.... are we heading for a housing bubble?  

Proposed government regulations, renters not needing to pay rent, uncontrolled inflation.