One challenge to manage is being able to clarify for lenders on those rentals (if you have them) which amount of the premium should be paid for each rental so that they do not include the entire premium into their escrow analysis, inflating your monthly payment on that rental. 

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.

It does beat the expected inflation rate of 2% set by the Fed.Rents will remain about the sameWhat’s interesting is they also expect:A 11.7% increase in existing home inventory followed by Single-family new home starts growing at an impressive 13.8%. 

Hello BP,The Producer Price Index (PPI) is a valuable metric to monitor, as it measures inflation from a business perspective (what businesses pay for services/goods) that isn't always reflected in the Consumer Price Index (CPI) or "inflation" which is commonly discussed in headlines and among other investors.

I'd also suggest that the remaining tenant pay only their rent for one month and that you use the security deposit from the other tenant to cover that missed rent.

Inflation takes off 4th quarter.  

This means you'll get a good cash flow, but appreciation of the property will be low.In the phoenix area there is more ownership and less renting, but due to prices increasing faster than inflation we are seeing a rise in renters.

Economic Stability and Low Interest RatesGermany is widely recognized for its economic stability and low inflation rates.

Inflation has finally caught up to us all.  

Case in point: Inflation is still sticky, like my sourdough bread leaven.