(I believe the 2% comes from the FOMC's long-term inflation target of 2%..)

Who is also trying to sell me 5 of the apartments he owns at an inflated price.

I know that the prices seem inflated, but it can't be compared to oter markets.

I guess it's clear from his thoughts that he doesn't think Blackstone and so on are artificially inflating prices, or that the weakening middle class, or middle class debt (student loans, for example), or that our economy 70% based on consumer spending (read: a populace that can afford to buy things) are weakness to cause one to steer clear of long term holding of real estate.

Unfortunately, it's a good hedge against inflation or a housing market bubble burst to have a house that is very rentable and a low interest 15 or 30 year loan in place, and enough cash flow to keep your head above water.

Good inflation hedge too..

This falsely inflates the numbers to look better.

We have had "defenders" of such claims on BP in the past, that investors are not required to follow generally accepted accounting principles, true, in their accounting system, but they are when it gets to public investing or applying for financing, so the only reason to have a double standard would be to puff or inflate claims.

If you believe appreciation and inflation will happen then leverage is the way to go.Scenario #1 Own a single 100k house outright.Scenario #2 Own 5 100k houses with 20k down on each.If you have appreciation of 10%, scenario #1 gains 10k in equity and scenario #2 gains 50k in equity.With inflation, the debt you owe in scenario #2 will be worth progressively less.Interest rates are low now.

"But you don't have to beat inflation to make an acceptable return.