Then I retire from W2 job, drop down several tax brackets, and enjoy the cashflow and pay my (much lower) taxes, and let my eventual depreciation recapture disappear with inflation over time (or never happen if step up basis holds).

Right now I’m bouncing around 3 ideas:  1) Local BRRRR for a single family home 2) Vacation STR within 2-3 hours drive or 3) out of state multi-unit since prices are so inflated in the DMV.

REITs have been a favored investment class for this reason, and have experienced the same kind of inflation we have seen in stocks - not so much a result of value, but due to demand since there are few alternatives.  

Deals were easy to find, numbers made sense, even in markets that are now completely over inflated (like San Diego, I was lucky enough to do well in that market as well).

With inflation from my understanding two things will happen.

The hedge on inflation is powerful, especially if you hold for a long period of time.

We've delivered over 490 investment properties and greater than 90% of our clients live in other states or countries; only about ten clients were local.Back to selecting a good investment location.We developed a straightforward process for selecting an investment location that is highly likely to provide a passive income where:Rents keep pace with inflation, ensuring that you have the sustained buying power needed to maintain your standard of living.The rental income will continue for a long time.Below is an illustration of our overall methodology.

. $100k ---> $50k), but that depending on the pace of inflation over the next # of years, housing prices can go down in real "value" as much as 40-50% or so., if nominal home prices remain relatively stable. 

On the bright side, rent prices took a dramatic increase since the pandemic and inflation it caused too.

By last half '23 we'll see inflation start ramping again.