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.

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.

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.

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?

And while that depreciation may be disguised by inflation, or area price increases, money does need to be spend as systems such as HVAC need replacement, roofs need to be replaced, and capital expenditures such as kitchen remodeling are needed for the asset to be rented at a profitable rental rate.

If a RE value increases at the rate of inflation, you have no gain from appreciation in inflation adjusted dollars without leverage.  

Inflation is hitting hard . 

Own hard assets that beat inflation.

We had a LOW inflation report today (7/11/24), big win!!

My operating assumption for our own investing is that this will happen again over the next 10 years.Technically you'd have to net out inflation and look at wage growth.