But given today’s market with all its ups and downs—economic uncertainty, inflation, and rising interest rates—it's totally understandable to feel a bit cautious.

Real Estate News in BriefA string of favorable data (lower inflation, higher unemployment rate) has convinced the market that the Federal Reserve will begin cutting short-term interest rates in September, and mortgage rates are already moving lower.Reminder!

Inflation?

Take a look at the study from Amsterdam. by Piet Eichholtz Eichholtz_A-long-run-house-price-index.pdf (maastrichtrealestate.com)basically a nearly 400 year study of the prices of the same homes along the best canals in Amsterdam since 1628, and the prices rose at about 2-3% or the historic rate of inflation there, same study has been retroactively and proactively studied in almost all countries on Earth and they all get same answers over long term, (Re rises with inflation rate) Now you can have short term bubbles like now in USA, but they usually deflate like the 22% drop from 1929-1935 or the 34% drop from 2006 to 2012, which many of us benefitted from.

At that point - won't it be at $30k/month, adjusted for inflation? 

The 3 and 4 bedrooms seem to be coming in around 90k to 110k which is right at precovid levels so to me they've actually dropped a bit given they haven't gained for inflation. 

I see this all the time with wholesalers who send me deals and over inflate the ARV 30-50% where it looks really good on paper, but is not based in reality.  

Does anyone know if Norada inflates their numbers or have they been found to be accurate?

I know that Hawaii is trying to reign in STRs so I don't want to stray outside of a resort-zoned area, however this means that costs are inflated.

If your goal is financial freedom you need an income that meets four requirements:Rent increases faster than inflation: Only if rents increase faster than inflation will you have sufficient dollars to pay inflated prices in the future.Sufficient to replace your current income: You must have sufficient income to replace your current income.Lifelong income: It must continue throughout your life.Low operating costs: Every dollar you lose to operating costs is a dollar less for you to live on.Rents Increase Faster Than InflationWe live on buying power, not a fixed number of dollars.