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.

Inflation is already at the highest it has been in over 40 years plus with recessions, rates usually drop, which means that inflation will likely get higher.

Making $2k per year for 20 years is MUCH better than making $40k on appreciation 20 years from now because of the time value of money and also because inflation makes future money worth less than present day money.

Right now the pricing is a little inflated for the long run.

We have been hedging all that inflation!

As Henry said, the vast majority of wholesalers over inflate the ARV and under price the repair costs.