(Builders and their Realtors will tend to inflate values to promote sales) If you want feel free to reach out directly and I can analyze the deal for you!

Sounds like the cashflow is decent to me.... the tax benefits might be more beneficial to you, and appreciation, and the guests are paying your mortgage down hedging inflation... etc, etc, etc.

If the appreciation and rent growth lag inflation, the value and income of this property are actually decreasing.Below is a decision tree I created which I hope will provide some guidance.

Real estate investing can be a great idea for several reasons:Potential for Appreciation: Over time, properties often increase in value, allowing investors to build wealth through appreciation.Passive Income: Rental properties can provide a steady stream of passive income, helping to cover expenses and generate cash flow.Tax Benefits: Real estate investors may benefit from various tax deductions, such as mortgage interest, property taxes, and depreciation.Inflation Hedge: Real estate tends to keep pace with or outpace inflation, making it a good hedge against rising costs.Leverage Opportunities: Investors can use financing to purchase properties, allowing them to control larger assets with less capital upfront.Portfolio Diversification: Real estate adds diversification to an investment portfolio, potentially reducing overall risk.Tangible Asset: Unlike stocks or bonds, real estate is a physical asset that you can see and manage, providing a sense of security.Control Over Investment: Investors can influence property value and income through renovations, management decisions, and property improvements.Building Equity: As you pay down a mortgage, you build equity in the property, which can be accessed later through refinancing or selling.Community Impact: Investing in real estate can contribute to community development and improvement, positively impacting neighborhoods.These factors make real estate investing an appealing option for many people looking to grow their wealth and secure their financial future.It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

“The [Fed] cut amounts to a declaration of victory over inflation, which has come down from a peak of 9.1% in June 2022 to 2.5% last month.

I think demand for rooms will remain high as inflation impacts people. 

When confronted with defaults and not being able to continue payouts to investors from income, the fund resorted to funding crap deals at outrageous LTVs supported by highly inflated appraisals, because they could charge 10 points and use the points to pay investors.  

Inflation is a godsend for anyone who owns hard assets, especially when they've taken debt.

@Rich Solano Need to lock those up at deeper discounts shoot for 30% minimum remember market values are still inflated in many cases, if you only buy with a 10% discount and we get a strong market correction you'll be in a tough spot.

It might take you 25 years (not 10) to replace your (inflation adjusted) current income (gross or net?).