I'm wondering if many of them will go to Dallas/Fort Worth instead (causing it to inflate even further).

We also got a lot of inflated estimated from Specialists, but more than the estimates, they scared us with too many tests.

I agree that Denver seems inflated, but there are still a lot of options available for investing, and right now the appreciation on properties is great city-wide.  

The higher the prices go 3,6,10 million the more debt tends to be used.With 10 year debt if interest rates rise then your loan balance tends to be less so even at a higher rate on refi the cash flow might be the same.STNL is typically for very wealthy investors looking to outpace inflation and generally make a ton of money themselves like 200,500k or more a year from a job or business or they are in retirement looking to be passive and estate planning.Triple net is not typically a yield play for returns unless you are buying properties with a few years left on the lease and rolling the dice, or doing a re-purpose on a property.

They (low end condos, and many townhouses) haven't even kept up with inflation over the last 20+ years.

Unless of course inflation is high but that is another topic altogether.But it sounds like you are borrowing this money from home equity so I assume you are borrowing it at a 4-5% interest rate?

Although with a wife and newborn child, I'm guessing we can only handle another year or two squeezing into the 1 bedroom we have.Since we didn't buy, we have a large cash reserve sitting in the bank not even keeping up with inflation (using online savings account that is currently at 1.15% interest).

Good parts of Decatur (City of Decatur) has been inflated the past few years and anything from Morningside/Midtown/Virginia Highland will typically have caps at 7% or less.  

You should also create your own projections and make sure that he isn't pulling a fast one on you; make sure you can justify the purchase to yourself.Often times seller will 'inflate' or paint a really rosy picture of their property.  

I question some of their screening and tactics used to put someone in at an inflated rent.