It looks like the appraisal was inflated for more than $40k on 2 properties that I bought to FLIP. 

Additionally, budgets have tightened since a lot of the free money dried up and the fast rising inflation has caught up with consumers causing continued downward pressure on prices and occupancy.

So, how do you invest to (1) take advantage of property price appreciation and/or protect against inflation (devaluation of “fiat” currency) and still protect against a crash?  

This is calculating a return rate of 8% (inflation taken into account).I might be a little bit more risk averse.

Tenants have to compete with dozens or hundreds of others for incredibly high priced rentals, to the point where cottage industries spring up to help place tenants.While I will never vote for policies that replicate the poor outcomes of other cities in my hometown of Denver, I do, sadly, recognize that just holding onto my properties and watching increasingly restrictive and destructive policies get implemented will lead to long-term appreciation and rent inflation relative to cities with more landlord and developer friendly policies. 

That could be a very well invested $100 or so.Additional expenses I add are municipal inspection fees, inflate the cost of all repairs if your prop mgt company is handling them for their load onto the repair cost and utilities while you hold the property initially and with turnovers.Overall, I wouldn't say this is a bad idea if you know what you are getting into and are comfortable with it.

Very rarely do business owners inflate their numbers on tax returns vs. internally prepared or forecasted financials.

Add in inflation on everything but especially home owners insurance and the expenses are significantly higher than just a couple years ago.  1% rent to purchase ratios have negative cash flow and the average ratio is below 0.5%.  

With the rate of inflation compared to savings rates, you're basically paying the bank to park your money there.Everyone's risk tolerance and definitions of a decent emergency fund is different though.

If home inflation rates are roughly 4% per year, then it stands to reason that in general you can probably get in the neighborhood of 4% rent increases per year.