I do believe long term San Diego will continue to have appreciation in excess of inflation, but I am reluctant to expect this over a short duration.

Rates will be back down in a year or two so anything you do now taking on a higher rate due inflation can be refinanced in as little as 12-24 months.Avoiding FHA also allows you to avoid the MIP monthly mortgage insurance.

I adjust my rent with inflation (increase rent by 3-5% every year...my tenants expect it)  Good luck!!  

Like if they took bridge loans in the beginning, and then interest rates go up 2% to help curb inflation, that may sink some otherwise lucky deals.   

I can't speak much to going out of state, but I do know some areas you mentioned may be a little inflated.

If every deal submitted (1) fits the criteria set forth by your buyer (2) is priced at actual wholesale and not some inflated fantasy number and (3) is priced to reflect the amount of work necessary to rehab the property to neighborhood standards, then you are the rare small percentage of wholesalers that know what their doing.

So what about the big elephant in the room...inflation? 

It would be silly, in my opinion, to go somewhere to chase cash flow where you aren't familiar and already knowing that prices are inflated.  

Now, if I could sell them half interest at a super inflated rate.

House hacking is a great way to hedge against inflation and raising rents because your loan payment will be fixed, but you can continue to raise rents along with the market.