The compound interest on top of the approx 8% a year sounds good to us!

The Compound Effect by Darren Hardy has some very practical ideas for balance and productivity.  

Figure out an interest rate to pay on that and when you sell the house, he gets $60K plus the compounded interest. 

That's compounding working against you.Could you refi the property for a better rate or just to reset the 30 year amortization schedule?

Use 3% rent growth compounded annually for 10 years rents grow to $1344.

That helps relieve many fears that most new investors have, and ultimately reduces risk.When you open yourself up to looking nationwide, you've immediately compounded the complexity of the decision tenfold, as you now must compare and contrast multiple markets against each other.

This will pretty much keep compounding if you keep investing it in other properties.

What you may not realize, is the visible paper losses you see, are hiding (in plain sight), compounding losses from many things...such as lost opportunities.

I ran the numbers compounding 3% rent growth @ $1000 per month rent would be $1344.

Use 3% rent growth compounded annually for 10 years rents grow to $1344.