At that point they can invest in ultra safe investments that give total IRR of 10% a year and outpace inflation by about 3 times. 

That is just an added expense and those savings could be used to pay down the new mortgage faster if you want to be ultra conservative.

Economists credit a mix of factors including ultra-low mortgage rates, increasing demand for space, and an emerging home-buying demographic: millennials.

They're typically priced in the 4-7% ranges so they're not going to give you that ultra low 3's rates that a conventional lender might.It would be best to figure out what your scenario is currently and see which route would be best for you going forward. 

I didn't specify that I'd only be going to close friends and family; it definitely sounded as if I was going to just ultra-experienced investors immediately.

Prices in San Francisco are already ultra high - almost 10x of my home town Milwaukee - and they are still going up.Now of course Milwaukee does not have a silicone valley (even though a very robust economy) so real estate will probably never be anywhere close to those levels.

But alas not anymore at least PDX .. ultra liberal has ruined that city for the short term.. still made a lot of folks money in the real estate game though..

Buyers will be paying these new, higher prices, but it may be easier to get something under contract without being ultra aggressive on terms.

If you are ultra conservative, take half as much money out so you have more buffer on your monthly payment.

@Naomi MooreI have a supply of ultra-rare beans with supernatural properties.