I do believe there is a possibility of a short panic induced bout of high inflation.

If water is rising in the tub, the blockage is below that point, and any water run into the drain stack above that point (such as a second floor bathroom) will raise the level in the tub.

Plus this area is growing rapidly with new schools; hospitals and recreation meaning property value will continue to rise putting it further out of my price range.

Private investors are primarily looking for security of principal and hedge against inflation.

I am looking to develop a mid-rise residential community.

Because your retrun is so far below the inflation rate, you are actually losing money.

The CG probably knows this, you could say the CG is taking advantage of the investor and who knows what that CG would come up with, it could be grossly inflated.

Like inflating numbers? 

Intrest rates are rising so it could offset the scenario you are using.

Maybe after 5 years or so as rents rise, yes.