There are several nice areas out here in the bay that are highly desireable, mainly thanks to the many hi-tech company's, weather, and several other factors.As a downfall though, most prices are over inflated so in order to get a deal you have to get a little creative.Currently I continue to come accross a lot of short sales and pre-foreclosures in great areas throughout the bay.

How do you profit from inflation?

Things are done right when I get the RIGHT contractor in. any way I interviewed a few PMs I found one that manages the property for 10% and does not inflate repairs.

It is an area of very inflated prices, one of the highest in the country.I thought there was perhaps a ballpark strategy that you wise folks use in making an offer.

Another thing to watch out for, though it's probably not that common, is tenants paying inflated rent.

Finally, historically after a real estate boom and bust cycle, it takes 8-10 years for inflation adjusted prices to return to their previous highs.Mike

Anyway, yes there are some inflated ARV's etc.

I love the commodity ETFs Gold, Silver, and Oil (SLV, GLD, USO).With the Republicans borrowing money from other countries and the Dems raising taxes, we are all heading for further inflation.

In fact, rents MUST go up over time just to keep up with inflation!

His analysis is that over the last 100 years, real estate prices have appreciated based only on inflation.