As we look forward to this new year, rates are expected to dial back further as inflation cools off.

The delta between the interest rate and inflation is minimal, inflation also reduces the real time value of the fixed payment over time, and rents tend to rise with inflation. 

The death benefit will just keep rising so that the policy always meets the minimum definition of life insurance.That said, many of the policies that I design are based on only 5 years of premiums.

The positive side is that we hang onto a historically low interest rate, and would eventually cash flow sooner with rents rising over time (who knows how long).

Hedge Against Inflation – Rental costs continue to rise and as the economy heats up, inflation becomes more of a possibility.

Volcker’s strategy involved letting interest rates rise in 1980-81 to levels unparalleled, then or since, and to become strongly positive in real terms.

It will also give you a much better chance of rising from the ashes, if a deal goes spectacularly bad. 

Q1 - $45k        Q2 - $6k/yr        Q3 - 7.5 years (assuming no repairs, not vacancies, no problems)        Q4 - 9 years (assuming $5k/yr)        Q5 - 13%        Q6 - 90 years (9 years per property)        Q7 - $450k ($45k/property...not counting inflation)        Q8 - 75 years (7.5 years per property)Option 2 - Buy using cash for 20% down payment & financing the rest.        

Also not much understanding of inflation. 

I want to be in those neighborhoods, because my value will rise as the city develops around me.