Total money you receive as income is more than total expenses. 2) Appreciation - Increase in the value of your property over the rate of inflation. 3) Equity buildup - This comes from paying off your mortgage principal balance each month.

In one case, a builder built three houses and "sold" them at inflated prices to straw buyers for cash.

The former owner/occupant of the house I bought paid a grossly inflated price (even for that time) for the house in 2007, and his only contribution to the house was to paint each room a different garish color.

I never used commercial money, and I am worried that more commercial loans ballon in 5 years, which bothers me as I see hyper inflation in the future.

Martin You can't just look at the percentage that the prices increased in value and say it's over-valued without looking at the reasons for the rise in prices.I do think that we've had a crazy couple of years in the Austin market, with prices going through the roof, and I do think we'll see a correction, but not a catastrophic one.

Will this lead to inflation?

You are required to maintain the unit and are can make limited rent increases based on rent controls (basically inflation).

Rising rents?

,Your concerns on high-rises are valid.

For it to happen, we need to get some wage inflation going very soon here.