With how inflation is looking today, it would suck to just have several thousand sitting in the bank doing nothing while you are deployed.

Inflation is rising and the US Dollar is losing it's value by about 1% a month according to macro analysts way smarter than me - cash is losing it's purchasing power by the day2.

-If a buy a house at an already inflated price, and the value drops during a recession, I'll be on the hook for more than my house will appraise for.

>If you walk the prices back to 1985 or so, it looks like it's just keeping up with inflation--no real change.I do not know your source, but the sources I access has San Diego appreciation double (or more) inflation for any period that I can find data on. 

You are definitely right, it’s not just a magic, but it’s faster than me needing to save my money for 15 years, from working a 9 to 5 job with a paycheck, high taxes and high inflation. 

So I figured it’s a good hedge against inflation and at least my savings is bringing me a return.

Rental properties, in addition to being essentially inflation-proof, also improve in value over time.

I mean with inflation and looking at other rents around them, they have to know that it is a below market value. 

Hello all, I've been an avid watcher of BP for years now and I've decided to get more involved.Anywho as I ponder on the current macro trends of our economy I have been thinking if the looming threat of recession could be the final straw that will break the preverbial camels back to real estate prices.I have heard that the covid shut down really stretched those doing the STR model and wonder if high gas prices + inflation + recession would bring another dry spell in vacancies.

The Net Present Value of the difference, depending on your views of long term inflation, is between $15-20k.