In the short time I've engaged in trying to obtain properties from Wholesalers, it has become painfully apparent that many, if not most, inflate ARVs, deflate rehab costs, and present very unrealistic deals to investors.

One other aspect of a refi without fixed rate that scares me; I believe given the amount of money we have printed in the past few decades, inflation won't hover around the historic 3-4% and in doing so could push interest rates up in tandem.

Personally I think some areas of Atlanta are inflated and are due for a min-bubble correction.

As of today Amerisave shows that 30-year mortgage money (FNMA) is:30-Year Money For Best Borrowers = 3.25%and Shadowstats shows the real (not the headline number) inflation is:Inflation = Between 2 and 4.5% depending on how it is measuredSo real interest rates for purchase money on real estate are between 1.25% and -1.25%.  

I've heard that investing in other counties or out of state might be a better strategy, but then again, that leaves many unknowns as well.What advice would you give someone starting out in an inflated market?

It's totally possible to take over a $90K note at 5.5%, sell it with seller financing for $105K at 8% and not be inflating value and not be predatory.

Most wholesalers who are "bad" are guys because they are "perceived" to inflate the ARV and deflate the rehab cost.

I think the realtor has inflated the price significantly.

Devaluation of currency is also known as inflation.

Maybe their money is sitting in a CD or savings account at 1% and they're watching their wealth/retirement account dissipate due to inflation (which is over 3%!