The money you pay off the loan in 30 years will likely be work less than 1/360 (30 years) of the inflation adjusted dollars. 

During the rental period, the TB paid extra towards the principal, and the price of the house was inflated a little to compensate for value increase during the 3 year period.)Just to be clear, it is your position that this is not a viable way of doing business at least in the pre foreclosure market? 

Possibly, give a break for 3-4 months at a reduced rate and then give your general raise in rents for inflation.  

Everyone is trying to hedge against inflation.

What I do not see happening in the short term is appreciation far in excess of inflation. 

My dilemma: The housing market here is slightly inflated right now, Im expecting for prices to drop.

Subtract the average annual inflation rate of 2.1% you don't have much left. 

When you figure in inflation - your taxes, insurance, etc. your costs will increase. 

The key is when buying STNL to not overpay with inflated rents for the property.

Anyone worried that the FED QE program will lead to massive inflation over the next 24 months?