The way I’ve always seen it explained:  You add 5 years of inflation to the current value, say 25%.

This is likelyi to reverse2) Housing prices got greatly inflated due to historic low rates.

I didn't see you bring up this point - just the same regurgitated - cash flow (much harder and lower today than previous years), appreciation (going to keep you up with inflation unless you're "lucky" and bought in a great area), loan paydown (takes 20 years for significant paydown) and tax benefits (if you make 150k plus there's a good chance you're going to be passing these on) Why wouldn't you use your taxable brokerage instead and just pay the capital gains and reset the cost basis?

What better inflation fighter than to offer low income housing that these people can sell later and buy something better when they are ready to make a change?

They don't cut rates because they've reached their 'inflation rate' goal; they cut because they finally realize our economy is circling the bowl.  

Mortgage rates are driven by the capital market and basically follow the bond market, specifically 10 year US treasury with a premium, historically about 1,7%.Yesterday the 10yT fell to 3.9% and I have seen 5.99% 30y fixed rates with a local bank in here Milwaukee (that is still an inflated 2% premium), so 5.7% would be historically normal based on a 1.7% premium, even without the 10YT going any lower.Here is why.If the 10yT offers lower returns, more investors want to buy mortgage-backed securities instead to get higher returns (about 1.7% higher), as a consequence lowering the returns on those as well.

Not sure I want to inflate his ego by telling him that.

Short term rents spike but long term they will hold to typical inflation numbers I think.

Look at tax bill and insurance factor in inflation and it can tell me how much I can charge or not charge.3.

I would say this, if you wanted to find cheaper tax preparation you 100% could but it might cost you more in the form of incorrect tax returns or inflated amounts of tax due.