Live where there is one door and own where there are many.NEVER INVEST IN ONE DOOR.Single-family homes are bad investments for the most part and have proven to be for the last 30 years, earning about 1% per year when adjusted for inflation.

I like 3-6 months minimum of all expenses (this can be invested in safer vehicles so you earn a higher yield to beat inflation).  5. 

If the market is inflated then that means I just won't find many properties that fit my requirements. 

My thoughts are more that a million bucks was a lot to my parents and at my age and with inflation I'm thinking my generation is looking at closer to 10 million with the way things are going up

When I look for deals I don't really pay attention to it because expenses are always left out or income is inflated.

However, the market would suggest that we will continue to see appreciation here and you can find property with a slight cashflow, cashflow neutral or slightly negative and just hold while rents increase, property values increase, and let inflation do its thing. 

As @Michael Ablan mentioned, depending on your state regs (places where rent increases aren't regulated so heavily) the general rule of thumb that I use when increasing rents is this:1-5% increase: keeps up with inflation and generally not enough to force a tenant to move.6-10% increase: tenants will start to weigh alternatives and will consider moving.

I do not foresee the property appreciating in value in the future, only keeping with inflation.

This doesn't take into account the time value of money, but as long as the interest rate is greater than the inflation rate, the net effect is that they're earning more from your offer than from another offer which is financed by a conventional loan. 

Are we seeing the beginning of a small housing bubble with inflated sales prices?