First is that appraisals are starting to come back not so great on some deals (signs of the market inflating) or the lenders are wanting you to demonstrate your basis in the property so they can make sure you still have skin in the game which defeats the purpose of BRRR. 

.- Rent increases with inflation.401(k) obviously have the matching contributions which is nice.It is never a bad idea to diversify rather than putting everything in one asset class.

Since it is NNN obviously the NOI is going to be the rent and use an inflated cap rate since there are only 6 years left on the lease.

I have worked in the real estate industry within NJ for over 13 years and I can tell you that NY / NJ metro and California are Extremely over inflated from my experience.

That’s only 3% per year, otherwise known as inflation.

They will use actual rents as evidenced by things like a signed lease, deposited rent checks, etc, provided those actual rents are not wildly inflated relative to appraised market rents.

Due to inflation... check this out to help you find out how inflation will affect you when you retire. https://smartasset.com/investing/inflation-calculator#xzbecwedTm

If they have a good reputation for not over inflating assumptions and have been around through a few cycles, you may be able to get a good feel for how they can perform.  

My friend isn't looking for much of a return for their first investment, they will be happy if we break even or beat inflation with their money sitting in a bank account. 

(and so would the sink).With a SFH and sink already shark bite-ed in, I'd get a plumber estimate to remove it 100% from the site (haul off included) and repair the pipes back to code.Then mark that up 15% for the PITA factor (and inflation) and spread the cost out over the remainder of the lease in equal payments.