Of course property taxes tend to be more expensive than interest payments where I live.The FED is supposed to keep employment low and inflation around 2%.

Such an income must meet three requirements:Rents outpace inflation: Every time you go to the store, it takes more money to buy the same goods.

For the 10 year period spanning September 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9.8% in that period.With inflation nearing its 2% target and signs of a slowing labor market, the Federal Reserve last month made its first cut in to the federal funds rate since the start of the COVID pandemic.

As property reconstruction costs climb due to inflation, I anticipate more insurance providers will follow suit in the coming years.Therefore, investors with properties in high-risk areas might consider a 1031 exchange to a safer investment location as a prudent option.

ARV values are often over inflated and rehab costs under valued creating a lose-lose situation for an investor.

In nearly every iteration of discussion of Real Estate and Inflation for the last, IDK 80-odd years plus it's been stated, restated, confirmed and reconfirmed over n over n over again that REAL ESTATE IS THE BEST HEDGE AGAINST INFLATION.     

If your rent increases just mimic inflation close to half or more if you self manage will bump your yield up and cash flow. 

But taking the long view, those low fixed rate 30 year mortgages are some of the best hedges against inflation you can have.

In fact, since the pandemic and inflation hit, the 2% Rule seems to have all but disappeared in all real estate discussions and been replaced with the “1% Rule” in this tighter market. 

Real estate is also but easier to control the outcome and also easier to compartmentalize/ turn off at night, for me anyway. 4.25% is less than inflation.