., likely running par with current inflation numbers)* Since this project is likely getting ‘blown up’ due to the commercial designation by the county, we’re now considering alternative designs to maximize the project.

Thanks.For I have the lender opinion as well as the investorOpinion, as an investor the line of credit sets the min bar for cost of capital and floor for opportunity cost for money.The philsophy is I can store money or pay down the principal in the line atleast it’s saving/earning me 4.99% interest as opposed to sitting in my checking where it’s subject to inflation loss.If REAL inflation is let’s say 5% rate then the real value of my money is maintained (5% inflation loss - 5% interest savings) while outside in my checking account each dollar is still 100 cents at face value, but real purchasing power parity is 95 cents a year later.This does not mean I don’t believe in any emergency funds bit rather once I’ve funded my 6-12 months of reserves I deploy extra capital into other vehicles to hedge inflation.When I find opportunities to deploy capital that meet my min hurdle rate for that particular asset class ( it varies with risk premium of each asset class) then I would deploy it otherwise Ill chill out and earn my min mentioned above.

But it is so hard to find an agent that doesn't inflate the value of properties to both buyers and sellers (higher prices=higher commisions).

Hi BP,I see tons of investors interested in turnkey properties lately, so I wanted to share my experience analyzing these deals after buying 4 in the last 12 months.After looking at maybe 100 or so properties, I can tell you that the vast majority of turnkey providers inflate their cash flow projections.

So we're in the environment of high inflation/high interest rate which means real estate investment is bit riskier until the interest rate and cap rate is normalized.

Prices have not inflated to much, however properties sell extremely fast lately. 

- Inflation can be an ally... loan costs stay the same over time as rents go up (inflation adjusted once a year or at turnover).

It just means that if you're looking to get into STR, inflated home prices make your operating expenses too high for STR to be viable.

You also have to remember that inflation will eat a little of your buying power away over 15 months.

Or can you deploy those extra payments into something else that will give a better ROI than the mortgage interest rate, plus taxes and inflation?