We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.Now we syndicate larger self-storage deals and work with passive investors.

On Thursday we received encouraging inflation data making rate cuts almost certain by September or November. 

The yield on the 10-year Treasury slid almost 8 basis points (as of writing) hovering at 4.158% following remarks by Fed Chairman Powell on Monday that the central Bank will not wait until inflation has reached its target rate of 2% before cutting interest rates. 

What if I bought a building and held it for 5 years and saved for cap ex every month, kept the money in a savings account at .05% and inflation ran at 3%.  

A book that is 5 years old may not reflect the current mortgage rate or inflated home price market.

Fed Chairman Jerome Powell sounded a bit more dovish in his testimony to Congress, and then the CPI inflation report for June came in lower than expected.

Some people will say you can only find BRRRR deals off the MLS and through wholesalers, but my experience is the wholesalers drastically over inflate the projected ARV and you can find similar priced properties on the MLS and their properties generally need a lot more work than they're letting on.

Ideally, you could find something liquid (money market) or fixed for a duration until you need it (CD, etc) with a rate approximating inflation but rates (even with talk of some incremental raises coming) still won't yield much.I think you have a good point about return.

Snow, then you don’t have a deal.Looking at it differently, instead of offering a lender a return that doesn’t even meet the rate of inflation, why don’t you offer your seller $200k for the property?

When we had an appreciating market, high inflation, low unemployment, extremely low interest rates, obvious relocation patterns (especially during covid), there was so much room for error.