It doesn't matter how low interest rates are if housing is inflated far beyond buyers' means.

There are some brand new units being built but the prices seem inflated to me. 

Either your comps are off or your numbers are inflated.

Picking numbers out of the air for expenses and looking to hit a certain goal isnt any different than making up a rent number to inflate the income on the other side of the equation.

Rents are on the rise though - my girlfriend lists rentals for a lot of my investors and she gets blown up with showing time requests and typically has a few applications in less than 48 hours.

For this schedule, I did not account for inflation.

If the latter the properties might be TIC **or** might be general partnerships if their activity rises above that of TIC and an operating/partnership agreement exists. 

I felt my blood pressure rise when she said that. 

Prices rise you miss out on the appreciation but your basis is reduced by taking in the option fee?)

I wouldn't consider 2.57% high interest especially with inflation close to 2% past two years.