I get calls almost daily from wholesalers with properties priced at full ARV, or with inflated ARV, rehab costs, etc. 

If it's fluffing, then a bunch of different real estate companies are all in a conspiracy advertising inflated rent prices, and they've been doing it for years.A bunch of these properties are currently being offered for rent from 900 to 1300. 

Or about inflation if you were to hold cash?

@Liam Kooyman a more sophisticated analysis of inflation and time value of money is likely to show the loss you incur in 6 years of 500$ monthly is far cheaper to you than losing $40k today.

After purchase It was clear that the rent roll was inflated.

I do think in the long run it always goes up due to inflation similar to house prices in decent areas.

Course that is over the very long run and in the meantime the checks sure do look good and the entry point sure is low so who knows if investors will keep pouring in and inflating values for a while. 

Why aren’t rising house prices described as Inflation?

The amount of cash invested in the property increases as you pay down debt; so, using the original cash invested at any point after origination will artificially inflate your returns.The reason I mentioned cap rate terminology is that there are BP members who like to debate on the fact that cap rate technically is a market value metric (NOI/market value not NOI/purchase price) and that it is only applicable to 5+ unit properties since SFRs are valued based on comps rather than based on NOI.  

My issue is I get emails every day from wholesalers offering me a property where they are A. offering it at a price where I can't make a profit, B. using unrealistic rehab numbers, and C. giving me an estimated sale price that is horribly inflated.