MichaelYeah, things definitely cost more now than before the inflation.

There are many reliable indicators that tell us that the prices of the past few years (though 2008) were highly inflated, and if that's true, there's absolutely no reason reason to believe that we'll see prices return to that level any time soon.If you'd like to factor appreciation into your model, feel free.

That means they're from countries with crazy inflation or risk of government seizure of assets, or maybe even today war torn/risk countries. 

Is the $10k a month inflation adjusted? 

Inflatables, etc.

Investing in real estate to build wealth has several key components, including, yes, anticipated appreciation above the level of inflation (many people who should know better often confuse the two) over an anticipated holding period of at least 10-15 years, a value-add strategy (this is important but often overlooked), mortgage paydown (a kind of money market account) and, yes, cash from rents. 

Betting that rents and expenses will rise (preserving the 50% rule over time as inflation escalates both rents and expenses) while your payment stays fixed is another.

Unfortunately I'm dealing with overpriced and inflated RE here...I'll have to get more creative.This place is on the border of Statesville and Troutman with Troutman schools.

RE can be expected to outpace inflation in the long term.  

I've never taken out a balloon mortgage on residential property, I never intend to, and I'm in Indiana, of all places.As a matter of fact, you'd be much safer with a US style ARM where at least the amortization period matches the loan term - your rate may go up but you won't be hit with a balloon payment that you can only pay off by hoping for a new appraisal in line with the inflated price at which the property was originally purchased.