Also if you have a cap rate of 3% for a property that has an NOI of 10 million dollars per year and you are able to add 1 million dollars a year to that NOI your appreciation returns are non linear but rather more geometric. 

But yes for one property the solution that gets you maybe 85% of the way without the geometric progression in costs is probably an LLC owned by a trust.

I'd also remove that geometric rug I see in some pictures.The shades are unlevel in several pictures.

And for IRR there are many different ways to calculate (monthly or quarterly or annual compounding and geometric or arithmetic accruals) but for the purposes of this discussion we should just stick to CoC and IRR.You don't need to wait until the sale to calculate hurdles in an IRR based waterfall. 

Your ROR on that move depends, of course, on the time interval between these two, but simplistically, it's what's called the geometric mean of those two values.

The fact that you have 25 mortgages makes it geometrically more complicated.

But this type of investing becomes geometrically more risky as you near the end of your career. 

Assuming a 2%-3% appreciation, your talking a 14%+ ROI which is still higher than the geometric average return of the S&P (again assuming cash flow is not negative).That last paragraph of yours sums up exactly my thinking.

I have been tracking our arithmetic and geometric growth rates for about a decade now.

Last summer, metal buildings colorado gave a completely new look to my house by roofing it with attractive geometric expanse of detailed metal panels  in bold colours.