I'm definitely learning how inflated those ARVs can be. 

I am working the low interest rates/high inflation strategy in the Bay Area, and working the job growth/cash flow angle in Houston.

Very basic first stab you can try:Check out Loopnet for apartment cap rates, keep in mind these are often inflated pro-formas.

In the past year or so I have become more interested in Oxford (and other small towns in NC like Roxboro, Salisbury, Henderson) because Raleigh seems to be a bit inflated right now.

I'm assuming that the insurance company is inflating the numbers a bit for a number of reasons (higher premiums for a start), but I have done some work to the property (new roof, new windows, new HVAC, encapsulated crawlspace) that I'd like to think increases the value a bit (and would make me much happier if I do sell!). 

Folks in the last decade who bought all those 125% LTV no-doc "Liars Loans" for inflated home purchases thought they were geniuses. 

So.....in it for the long haul - just hoping I start getting offers accepted at some point (curse you, highly inflated market, hah!).

I have been very conservative on the ARV as well as inflated my reno budget to cover unforeseeable issues because its really old. 

That means they are committed to the current terms for 2 years, and I would potentially be committed to the current terms for up to 10 years.I figure I need to work in a 3% minimum annual increase to cover inflation and cost of utilities.  

Another thing to remember is that thanks to inflation 1 million today does not mean what it did even 10 years ago.Within recent memory, a $10,000 car was considered quite luxurious where that same amount to barely pays for something "good used".Today, a "ten-millionaire" would be roughly to equivalent to what a "millionaire" once was.Even to be "rich", Forbes Magazine says you need to have a gross income of $1 million a year.