Due to inflation of prices, I found myself a little over budget in the past few rehabs. 

A well located and well run dry cleaner, convenience store, auto repair facility or juice bar can be a steady paying tenant for 20 years with rental increases covering the rate of inflation, or more.  

With rents going up and interest rates going up - long term rentals look like an excellent hedge against inflation.

Some are telling me to hold for the market to shift but, I'm not convinced we'll see the shift many are anticipating unless we see a flood of foreclosures due to inflation.

Add this huge demand/supply issue to the new risk identified due to COVID eviction moratoriums, high mortgage interest rates, high property values, robust job market, and significant general inflation and the rents in San Diego are very likely to continue to increase as a high rate.Note, at the average monthly rent increase, the rent per unit is ~$6k/year more than a year ago. 

There's always the possibility that the inflation will save the day by racking up the sales even though foot prints don't change.What would your advice be for this? 

Now, I know the cash flow is super-low per unit, but if it's rare to find something that cash flows immediately, if it's diversified across a good number of properties and if we could be in for inflation and potential rent rate increases, does this sound like a good deal? 

You are essentially pre-paying, at hugely inflated costs, a week or two's worth of hotel rooms each year.  

I personally got involved in real estate because I came into a sum of money and due to inflation, it is consistently losing purchasing power.

*clap clap clap clap*A much maligned group, we saw the double standard during the pandemic: "you businesses stay open and continue to provide your services even if your customers are not paying you" and it continues with the inflation-based rent increases we are forced to levy today in order to stay solvent.