-It does not factor inflation but I am assuming the initial cost to acquire the rental will go up at the same rate as the monthly profit at a 1:1 ratio.Thanks again for your help and reading

I am still waiting for inflation to rear it's head due to the massive spending.

Most wholesalers inflate the ARV and do not factor enough for rehab.

The key is getting the purchase price, rehab estimate, and accurate ARV at which the property would move fast correct.If the purchase price is inflated, repairs more than anticipated, and ARV lower than expected for one or all the whole deal can be worth ZERO.Usually a rehabber builds in a 10% contingency fee for things they can't see in walls, under floors,in the ceilings etc.So your 45,000 if accurate they would add 4,500 to that.Seems like a thin spread to be working on for resale. 45,000 is a lot of rehab for house in that price range.

Their thought process can also be skewed by a subjective approach in trying to massage the numbers to meet what they see as the price needed to get the deal which may include an underestimated budget or inflated exit that is not a true comp.

I got to chat with Ben Leybovich about his at a local meetup this week, and I must say I appreciate that he steers clear of inflated optimism.

I was always happy to pay back the inflated debt.

We don't have the crazy inflation some states have had, but Indiana has a very stable housing market.  

We have received a good offer for it, and feel like we can do a lot more with the funds, rather than letting inflation eat it up over the next 30 years

I found that most sellers inflate the value of the property making it difficult to flip the contract and still leave any meat on the bone for myself, so I always ended up just buying the house and doing the deal on my own.