Lots of rentals in the area are sitting on the market right now, so I will decrease rent and see what happens.

Contrary to what some folks preach, real estate can--and does--decrease in value if the surrounding market falters).

My personal opinion on "how we got here" is a confluence of decreasing economic opportunity (perceived or otherwise) for the middle class and the information age.

@Daniel Hurtado I think as soon as the unemployment benefits run out, and the housing market cools off, and the banks start foreclosing on these people who were protected then the opportunity for distressed sellers will decrease.

Demand for housing decreases.  

In order for the plaintiff to do that, the plaintiff must prove two things: there must be a unity of interest and ownership such that the separate personalities of the entity and the owner no longer exists; andan inequitable result will follow if the acts are treated as those of the entity alone.Unity of Interest and OwnershipThese are factors the plaintiff could use to show a unity of interest and ownership exists:one individual's ownership of the entire entity;use of the same office or business location by the LLC and owner;commingling of funds and other assets of the owner and the entity;an individual holding out that he / she is personally liable for debts of the corporation;failure to maintain minutes or adequate corporate records;disregard of corporate formalities;absence of corporate assets and inadequate capitalization; andthe use of an entity as a mere shell, instrumentality or conduit for the business of an individual.Importantly, no single one of these factors is determinative, but the court must examine all the circumstances to determine whether the “unity of interest” test is met.

The inefficiencies have decreased over time, so successfully finding, vetting, analyzing, negotiating, marketing and closing on a property you can contract to purchase at one price and then sell at a higher price without “touching” the property is a lot harder than it was in 1980.  

It will push out landlords though decreasing inventory and increasing rents.

And what if prices decrease 10% over the next two years, what's the backup plan?

I would definitely adjust those numbers for a likely 5-10% decrease in the valuation of the house you already have and anything you would acquire by this time next year.Don't sell.