Inflation constantly erodes buying power; each year, it costs more to buy the same set of goods.

Most of the time, the asking is too high, ARV is inflated, or requires full rehab that would makes it too risky if things doesn't work out ($50k+ in rehab). 

Do a mock 1040 schedule E to see how you stand and while at it, figure out your principal paydown and get a 3% inflation number.

NNN offers them big incentives where they can grow and protect their money from inflation while taking advantage of tax deductions.

Show the repairs (inflate them but stay in the ballpark even if you are planning on doing the work) and mention the interest rate hikes further hurting the market . . . do they want to see know or pay carrying costs through the spring only to find the market has not improved.Good luck

Long term housing prices are largely dictated by inflation rates. 

However, Reagan took actions that were not really felt until inflation was tamed.

Inflation or deflation?

I do not want to invest locally here, the market here is inflated but the properties are okay priced.

Over the long term, at only 3% inflation your rents will, increase if the properties are maintained and in demand, more so if you do a better job.