Also I'm guessing your "ARV" number is inflated also, as usual with TK.

Below are the graphs for housing prices on the left, and inflation adjusted housing prices on the right. 

There is an awful lot of risk buying these 100k houses in war zones that I see going on.I assumed 2% appreciation to track expected inflation because that's what houses have averaged forever here. 

They always inflate the sales price and under-budget the renovation budget. 

I see a lot of inflated ARVs and you could argue soft rehab budgets (hard to say since everyone rehabs to different levels and some may hire a GC versus GC themselves - all of which makes a difference in your cost). 

(Of course it's skewed by the time value of money and inflation.)Now look at taxes.

As time goes by, the value of the asset steadily increases, keeping pace with inflation, if not beating it.

As time goes by, the value of the asset steadily increases, keeping pace with inflation, if not beating it.

The specific gentleman in question was quick to point out my trash, MLS deal and "inflated comps."

To me, this is a great metric because it compares home prices against wages and it seems wages are more stable and a better representation of normal inflation growth.