The market in Atlanta is a little inflated right now, so everything will cost a lot, but they don't want to max out on their budget in case anything goes wrong...which...Murphy's Law. 

Mila,Be careful and make sure to get accurate rental comps, some agents have a tendency to list properties with inflated rents. 

Prices are very inflated right now.

Should these funds be held in a interest bearing account to offset effects of inflation?

I always try to keep my money moving (like the bank does, funnily enough)The current inflation rate is around 2.2%.Not many banks pay more than that in interest.

I mentioned the amount of inflation over 10 years and the company owner seemed to blow it to the side saying it only accounts for operational expenses.

They are in the trenches, acquiring assets, building connections, getting the know-out, facing the challenges, looking for solutions, gaining experience, building momentum.When the recession hit, they will still be out there learning from their mistakes but still buying.If you have been sitting waiting to get into the game and looking to borrow for example, people will be less likely to lend you.If you think a recession is around the corner, still invest but be conservative.For example, if you were going to be a house ot live or rent out, buy a house that is coming at a discount on the market because it needs repairs.Doing the work and making the repairs will provide you with equity in that house that could you shleter a recession.Buy in area where the house prices are not massively inflated so that your monthly expenses (including mortgage payment) are well below the rent that house would command.In that scenario, you have some protection should the market dip because you'll able to hold on to that house for a long time without having to worry where the market is.

Most wholesalers use inflated ARVs with low rehab estimates currently

Undoubtedly, the 90k estimated value is inflated, and the true value is somewhere around 50-65k. 

That said, the problem is that prices for this area (mostly just the historic district) are already very inflated as investors have been pouring in for many years in anticipation of what we are seeing now.