Obviously you would have to have the ability to underwrite deals and learn about the specific market but lending $60K for a $600-$700 per month interest only return, then compound it year over year will help you grow your capital.  

I agree with @Isadore Nelson, there will be an initial sting due to to the IRA transaction but with quick math at 8% your 60k will generate about 4.8k in year one, in 4 months at 1.3k you've already eclipsed that, their will also be a larger tax for passive income and an initial penalty from the IRS, but it won't erode the 8 month difference let alone the yearly compounding effect.

@Daniel Na https://www.wikihow.com/Calculate-Compound-Interest

For that reason, we prefer fast scalable strategies that are repeatable and allow compounding faster for new builds than a build to rent triplex. does anyone have a similar strategy?

That’s the magic of real estate compounding over time, and it’s stories like yours that really highlight this.. from what i read in the street journal, that slow build often outperforms shorter-term stategies.From an investor-friendly agent’s perspective, being willing to dig into the neighborhoods (driving for dollars) and having a robust network.. from probate attorneys to local contractors.. can pay off big.

I have lived in Truckee for over 23 years and understand the pain you can go through dealing with a local government where the answer you received on Monday is different than the answer you receive on Tues, Wed, Thur & maybe even Friday if anyone is working.

On a $50k down payment, he is seeing a $45k gain in annual (compounding, so that number gets bigger every year) appreciation along with the loan balance being paid down little by little  each month.Now that example did not cash flow because he lived in one of the units, but if he moves out in a year or two, it will.

Since a large portion of loans are sold on the secondary market and backed by the US Government, the government rightly wants to know what their risk is.

We are looking at the compound asset acquisition and also using the short term rental loophole for our future properties and likely moving my wife into the real estate professional position while I remain at my W2 position.To sum it up, I would like to know what higher income W2 earners are doing in order to help offset their W2 taxes or if there is a way? 

Down the road you can afford a farm once you have strong income and have let your investments compound.