Their pro forma is inflated so this all sounds bogus to me to compel me to stay. 

we set our cap ex budget by getting quotes on roof replacement, exterior painting, etc factored in the life span + increases for inflation (e.g, we assume its going to cost more to repaint in 10 years then it is today, so we factor that inflation into our calc) to derive an annual accrual amount on cap ex.  

Some take inflation into consideration, some don't.  

I'm curious where rents go to with the inflation that we're seeing. 

I understand that pro forma data can be inflated to make the property look like it is receiving more income at 100% occupancy.

If they are inflating their expenses or deflating their income when reporting to the IRS, you may be able to use that to your advantage to drive down the sale price. 

There are a lot of questions to ask, and I'm sure most of the BP community answered them, but be forewarned that just because people are priced out, and demand for rentals will go up, consider that inflation is on the rise according to shadow stats it's well above 15% (I know BLS says it's at 8.5% but, it doesn't account for a lot of factors like they did in the 70s & 80s) and with that said expenses will rise too so make sure you account that in your underwriting. 

Homes were selling 9% over the asking price, on average.Despite rate hikes, inflation continued to rise forcing the FED to take a more aggressive approach.

R.E. is "the" hedge against inflation, so it's a simple risk-analysis of 1 vs the other.

Cut your losses, update the unit to get top market rent, screen prospective tenants hard, move on.Unfortunately, from what he tells me, it is because of inflation.