This strategy allows you to keep your return above the inflation rate, zero risk of principle loss, and still have dry powder that turns over every 90 days for a buying opportunity.4.

Sellers with inflated prices are not really motivated.

Someone who is licensed cared enough to go through the process to become licensed and they are more likely to show up every day and do what they are supposed to do.I wouldn't ever tell a contractor what I paid for a property - just none of his concern, but him knowing that shouldn't change his estimate unless he thinks there might be something wrong with the property and he is inflating his estimate to cover possible unknowns.

Also, think about the value of your cash flow now will not be equivalent with the same value in 5,10 years etc. due to inflation.

I think 3% is reasonable but you HAVE to keep up with inflation these days.

Problem relying on Z-rent solely is that vacant properties that didn't rent will appear as rented just because the listing was pulled down despite not renting, and by doing that it is inflating the rental rates.

Makes for higher cash flows and good hedge on inflation. 

Now was the rent inflated??

(I have taken it back 3x DILO over 10 years so the bldg owes me nothing.)I assumed ownership after the 'auction' failed to entice any buyers, but the foreclosure amount was sufficiently Inflated with expenses etc above MV.

We recently came to the realization that our cash "reserve" is getting fairly large, and it's being underutilized  in a bank account, where it's only losing value against inflation.