My Question is if i have a private investor loan me $70K for 5-7 years (his terms) at 12-15% (not compounded).

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Much of it based on defense spending that will likely increase as assets are moved from Colorado to Alabama to include the Space Command HQ.

No it does not compound like that 

In Canada, notes for fixed-rate mortgages are compounded semi-annually, not in advance while an LoC will be compounded monthly (at best) or daily (at worst) with reality being something in the middle (i.e. compounded monthly based upon daily average, highest amount, etc). 

And YES, far FAR too often I am seeing people stack up UN-realized expenses at a compounding rate, to give selves a false sense of "profit" on whatever monthly/quarterly capital there moving around. 

I'd expect for example, all else equal, for more rent growth in Denver, CO, than Memphis, TN, over the next 20 years, compounding from current rates.

Quote from @Dustin Calgaro: Man I really screwed that math up, I didn’t compound the appreciation.

(a) market price appreciates at a compounding rate AND so does (b) rents appreciate at a compounding rate.   

It is amazing how many times I have seen the cash flow represented as rent - PITI and to compound the issue they did not realize the ADU would increase their property tax.