An appraiser doesn't want to lose his license by inflating values.

Are you doing Appreciation Plays/Asset protection/Inflation Protection?

This requires an income that rises faster than inflation, or you will not have the additional dollars you will need to pay future inflated prices.What causes rents (and prices) to increase?

Those that bought at inflated valuations and dont have the patience to invest for the long term. 

Quote from @Jesse Turner: From what I've seen and heard, construction on the USVIs is very expensive because materials must be shipped in and there is a dearth of labor.I plan on inflating my expense side of the analysis significantly to make up for the expected increase in material costs. 

With rents being inflated in this area I would rather paydown my own mortgage than someone else's.  

I've been told by other investors in San Diego that there will be a correction soon to come and the market is insanely inflated.

But you don't invest for the first 6 months when you lose money, but you invest for 3, 5, 10 years down the road when you are selling it, pulling equity, or you are getting $800/month cash flow because the market is up again and inflation is up.

How much do you think this really appreciates in 7-10 years, given we just experienced an inflation boom and this still was sold for $67,000?

But, for all the Minimum Wage Slaves that work in the Retail and Service businesses, it made the Rents double and triple at a time of Inflated gas, food, medicine to where my old tenants call me begging for help to find a place to move to.