The only logically predicted result was rapid escalation of RE equity (inflation of RE value), which is fine as long as incomes increase at the same rate.

Maybe you can rig up some sort of GOI that shows an inflating and deflating bubble.

That line is driven by inflation.

I therefore considered doing a 1031 exchange yet the challenge is to find a "like" investment that is not also overly inflated in its price. 

Given, $100 today is worth more than $100 in the future due to inflation and the time value of money, but I'm not sure it was all worth it.   

I see a great opportunity giving the location is steps to the college, with development going on in the area and price for rent rising, my rents would accommodate a large portion of students who can't afford those higher rents.

I'll be doing very well from my main deal "scraps" and they'll be making around a 12% passive ROI, plus the appreciation of the land and rising hops prices for quite a few years to come. 

I am not sure they have adjusted for inflation over time.

In my opinion values of those properties are only going to increase as vacancies continue to decrease and the metro NYC area keeps rising in demand. 

He had no idea water costs were on the rise!