However, this seems like an inadequate amount if costs rise for Future Value with a 3% inflation rate.

I highly suspect maintenance/cap ex over long hold to be closer to $400/month than $132/month and it will in no way be $0/month and leaving it out to inflate the return for any reason including it has just been rehabbed or is new construction is absurd and misleading.   

Sometimes properties with clouded title are sold using owner finance.5) Talk to a property manager to ensure these are good rental areas and the rental income is not artificially inflated by an unethical seller.6) Do the math on the repairs, monthly income, monthly expenses all make sense.

Wall Street thought we were going to get six- eight rate reductions this year we’ve seen none so far and stagflation is setting in , the Fed is trapped , if they reduce rates now , inflation could catch on fire if they increase them again too much something in the economy will break I think we’re in this holding pattern for one to two years personally, I don’t claim to be a macro economic expert, but I do study it quite a bit and I’m not counting on or expecting rates to come down anytime soon and even if they do, they’ll just be small quarter-point rate hikes not enough to make a huge difference in cashflow, so ..I either hold and if they do decrease rates, there will  probably be another asset inflation bubble, which will increase my appreciation, or my cell and deploy the capital more wisely and look for some market softening and buy a good deal

If inflation remains sticky the fed may not lower rates much in the next 3 years.

Purchase price: $194,500 Cash invested: $51,000 When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation.

I believe that shelter inflation will remain at or above the current rate of 6% over the coming years.

Purchase price: $212,500 Cash invested: $50,000 When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation.

Purchase price: $215,000 Cash invested: $55,000 When we talk about long term rentals the goal is to buy something that people are going to live in 3-5 years with the ability to raise rent over time ahead of insurance, taxes and inflation.

What is lacking is protection from a sudden surge in inflation - or devaluation of the dollar.What I try to do, to get the best of all worlds, is I have 50% of my portfolio in performing notes, and the other 50% in real property.