I'm also afraid that because of this market and the rate of inflation and rise of home prices I will miss this deal and it turned out being better than I thought.

Even though the economic fundamental for a regular boom is not there but the artificially inflated price due to more money is valid.

We'll see if interest rates increases and inflation will subdue it in the near term. 

They helped me with some problems with my original contract and walked me through the whole process.California has rent control, which limits me to increasing rent by 5% annually plus inflation based on the consumer price index. 

I'd like to get other people's opinions but here's what I was thinking on pros and cons.pros: low down-payment, high leverage effectively a hedge against inflation, use up unique fha loan slot, get a second rental, I can get capital gains by building/buying for 5% less than market value. 

Just feel like now is the time to take advantage of an inflated market with low rates to bolster the cash position &/or buy a solid property for a long term investment if something comes up and ride out any downturn.

However, in my opinion it would really have to be a "Can't Miss" deal for that much leverage to make sense in this current inflated market.

What if inflation happens and your double money sitting in the bank is worth half of what it originally was?

Not ideal, but it at least is keeping up with inflation during the savings period.

And I don't believe it has an inflation adjustment attached to the $1M threshold. 10 years from now the $1M will be worth a lot less, yet we're still taxed at ~40%.