In high-rate environment, with double digit interest rate and high inflation, you lose money and make the lender cash-flowing (not you, you're literally suffering).

WikipediaInflation compensation - The location determines whether rents will increase fast enough to offset inflation.

Then when you go to sell with rental increases be able to sell at a level with inflation accounted for that would get you close to a break even price so you do not lose any down payment.With 2 to 3 tops the blended cap rate over time and value is not as affected because they are underwritten differently.

Inflation in the US is so bad right now that…- My friend received a pre-declined credit card in the mail. - CEO's are now playing miniature golf. - Exxon-Mobil laid off 25 Congressmen. - McDonald's is selling the 1/4 ouncer. - Angelina Jolie adopted a child from America. - Parents in Beverly Hills fired their nannies and learned their children's names. - A truckload of Americans were caught sneaking into Mexico. - A picture is now only worth 200 words. - The Treasure Island casino in Las Vegas is now managed by Somali pirates. - I called a car dealer to get the book value on my used car.

Hello BP'ers,Today, another monthly inflation report came out, the nations December CPI. 

This is because rents are a significant part of the inflation metric that the Fed looks at.The market is good for lenders, but it’s a different story for investors.

Long term I can see Milwaukee home prices creek up to the national average, which probably means they will double over the next 10 years, partially fueled also by inflation (devaluation of currency).You could try and BRRR on the fringes of that gentrification, which should work in theory, but you already need a fair amount of comps over 200k for it to work and a "good neighborhood feel" - I have not seen it done yet and the risk is of course that you don't see the same rate of value gain as you see in desirable communities..

property value have soared and do not seem to be dropping even with inflation and higher rates. 

The only thing I use cap rate for is predicting the future exit value of the property by using today's market cap rates and inflating them for a time adjustment. 

I get inflation might have something to do with the increase in monthly charges but I'm sure its still going to continue rising.