Cash in your pocket either for reinvestment or lifestyle.2) Appreciation - How much a property increases in value each year, generally 3.2% or inflation rates.

But based on my research:CA Proposition 13 limits the tax rate for real estate to no more than one percent of the full cash value of the property.The proposition decreased property taxes by assessing values at their 1976 value and restricted annual increases of assessed value to an inflation factor, not to exceed 2% per year.

Not only is California one of the most tenant-friendly states around, but compared to the rest of the country, prices are super-inflated at the moment (my dad just sold a 1600sqft tract home in Cerritos, CA for $880k!)

Now with inflated prices and interest rates rising the returns have dipped into the teens for on market deals.

Inflation and rents have both risen though your overall return can include paydown, appreciation, tax benefits etc. so its not impossible but a lot has to go right.

However, the report also mentioned that 2022 still had uncertainties, more specifically increasing inflation and the more transmissible Omicron variant of COVID-19 potentially slowing down economic conditions.

With that much cash, I'd diversify and do a couple of things.1) Invest in syndication and/or invest with a beginning investor and require returns that are +x% above inflation (10-15%, for example)2) I'd take the other half and I'd buy some short-term rentals in some of the hot areas.3) I'd likely look into investing in other things most people don't think about, like an Annuity Policy which is what we just bought for $1,000,000, and now we're the bank for our lending needs.Congratulations on the success thus far!

What strategies and tactics are my fellow investors employing to fight inflation? 

Originally posted by @Matt MillardAccredited which passed Congress before I was born is $200k annual income or $1 million networth out home & $400k income if married.I believe it's 300k for married couple and if they were to adjust it would be up not down due to inflation.  

This certainly won't make you rich, but it might keep up with inflation and is a very safe way to earn 2%.