There are several criteria that a location must meet, and below are three of them:Rent growth must keep pace with inflation.

Not only is the limit likely not even half of what you need to rebuild based on the square footage but it looks like the policy has not been reviewed annually to ensure coverage is appropriate and factors in changes in the market (increased labor & materials costs, labor shortages, inflations impact on housing costs and so on) so i would be cautious as the $per square ft being used to calculate the limit is likely low also.2. 

There're few businesses that's inflation resistant like Legal Financing and such, so if real estate drops, you still income from other asset class.

My business partner and I are looking at a few properties in Paterson, NJ and we would like to get someones take on the overall real estate market as of today.My analysis:- Prices are heavily inflated due to the current sellers market but to my understanding.. the prices on houses in the area have been increasing over the past few years now. - An 'opportunity zone' for the state of New Jersey that has attracted small business investors and a large pool of real estate investors as well.- Most homes don't seem too developed... which leads me to think... appreciation is mostly because of the land the home sits on, not the home itself.- Playing to my last point, pretty competitive of market real estate (which can result into bidding wars on investment properties.)- Medium home value range is in the $340,000 range (My guess based off of a few deals I analyzed but would love to hear everyones thoughts!)

Once inflation is under control, rates should stabilize and it might be feasible again for the novice investor.

We're always 1 war in Ukraine or bank failure away from things changing.With that said, many lenders I've spoken to seem to think that over the next few years, they will go down gradually (assuming the war on inflation is working). 

From my own experience and what I know of others, you just have to factor tax increases into your overall rent increases, just like you would insurance, PM and inflation increases.It doesn't hurt to socialize the tax increase and give the tenant some warning that rent will have to increase, but I think you're going to have to eat this until you can get the rent up to reflect the increase. 

Even if you're not cash flowing right now, rents tend to go up with inflation but mortgages are typically fixed (what's yours?).

So it takes about 10 minutes to pick pretty much any street and know this is a $500,000 to $550,0000 street.On a property worth say $750,000 which is a cheap house in Auckland these days you might get a variation of 50K in valuations but that would be it.The industry is also regulated so the banks only use their own panel valuers and any valuer who is seen to be inflating or deflating values to advantage his client would end up in legal trouble pretty quickly.

Only one I can think of is the resulting hot inflation run-away, and thus the "Cycle of Stupidity" economic theory.