Let them eat the inflation.

I consider the 3% long term property appreciation to simply be a hedge against inflation and that's all. 

Don't start moving the goalposts (i.e. by inflating the sell price or lowering the reno budget without data to support it; using 80% instead of 65-70% in the equation above to sacrifice your eventual return) in an effort to wedge a square peg through a round hole.Not every property you analyze works, and providing them with a "low" offer isn't taking advantage of them. 

Hi @Dana Kimberly,The max lease terms were already mentioned, so I won't reiterate that, but 2.5% increase in rent is fairly standard as this number reflects the average national inflation rate.

Be careful with wholesalers inflating their numbers to make a quick buck.

Real estate offers inflation-adjusted income, equity growth through appreciation as well as the tenants pay down the mortgage, depreciation, tax deductions.

My fear in waiting is that it may take me another 2 years to get the money for a 100% downpayment while inflation and opportunity cost chip away at my savings.

But in this case I'd appreciate some advice from the forum on whether it is reasonable to raise rent annually by the rate of inflation. 

Enough to buy a new Rolls Royce ($450,000), or more (grossed up for inflation)?

Probably less than net inflation.