So no one knows what coastal So Cal prices will do in the short term but they have historically appreciated far better than inflation or most other locales.  

This would net me $2,400\month after taxes from rental income, which even with inflation after 5 years should leave me enough to pay all my bills. 4.

To become more comfortable do some research on "Inflation induced debt destruction" whereby debt is constantly being debased by inflation.Also, sounds like you've put a good dent in your mortgage and have solid LTV. 

I've see too many properties touted as "value-add" where the seller is really saying "add the value to ME by paying my inflated price!

I would say these areas are no longer "emerging" but more so booming and possibly even over inflated currently. 

Be careful, lots of inflated prices currently in Buffalo.

I think with the current economy and with inflation that's a humble number to be honest.

@Jay Hinrichs Yes, I have seen inflated ARV's, comps that don't belong; and rehab budgets that are impossible to fathom at that number.

Thanks to hyper inflation he has nothing for his entire lifes work.

The problem I've found with new wholesalers is they don't know how much fix up costs actually are, so their prices are usually pretty inflated.