lets pay down all that debt and be "risk" freeValue = 100KLoan = 0Equity = 100KROE = $3.5K/100K = 3.5%At least I'm beating the nominal 3% inflation rate...A disclaimer, I'm leaving out a lot of important variables for simplicity of math to help uncover the trend I was trying to point out.  

I purchased a home back in 2005 that I thought I'd rent out but I was inexperienced and didn't realize how over inflated properties were back then.

They do not like seeing folks 'inflating' purchase prices just before close.  

Factors of inflation apply.

I'm not a heartless professional wholesaler who over inflates values and lies on repairs,  and I don't prey on new investors, but if the buyer is a "big boy" I don't try to get in his head and determine why he would pay the price he pays.Hope that helps.

I HATE the stock market, it is HYPER inflated right now by the banks giving loans to companies to buy their own stock back. 75% of stock sold were by this play.

I get nervous when I have to assume rent growth, raising rents, hope that rents would go up and expenses would be static (unlikely if inflation is a cause), etc.

Please realize that I am not saying your agent will find you a deal in three days...that's foolish especially in an uber competitive market where we are frequently seeing multiple offer situations that inflate strategically priced homes.

Inflation will make this grow.How are you going to EXCEED that overall target?  

These neighborhoods tend to have zero appreciation at best and at worst negative appreciation after accounting for inflation, and you still don't control that but you sure as heck should care because you are then loosing purchasing power every year.