To compound things the unit with the STR permit is obtaining reduced revenue.  

And by keeping my day job, I was able to compound all of those rental earnings. 

Anytime you can hold on to a home you should, compounding interest will always be your best strategy.

I've also talked about the power of compound interest and other investing strategies.

In your example if you had kept the $30k compounding at 10%, that would be one large number for sure.

.### Calculating Annualized ROI (CAGR)The formula for CAGR (Compound Annual Growth Rate) is:\[ CAGR = \left(\frac{Final\ Value}{Initial\ Value}\right)^{\frac{1}{Number\ of\ Years}} - 1 \]In your case:\[ CAGR = \left(\frac{\$601,816.40}{\$235,000}\right)^{\frac{1}{30}} - 1 \]Let's calculate this:\[ CAGR = \left(\frac{601816.40}{235000}\right)^{\frac{1}{30}} - 1 \]\[ CAGR = (2.56)^{\frac{1}{30}} - 1 \]\[ CAGR \approx 1.0303 - 1 \]\[ CAGR \approx 0.0303 \text{ or } 3.03\% \]This means your annualized return is about 3.03% each year over 30 years.

Even when I hear stories about investors that scale quickly, take on max leverage, partner up, etc. and get 28 doors in 2 years, it's either a situation where all details and context are not communicated (rich parents - for example) or it was a "just because something worked does not mean that it was a good idea" situation.You win the investing and real estate game by never being a forced buyer or forced seller and letting the compounding effect of time take over.

And, of course, it doesn't stop compounding once you do deploy the capital for said deal/opportunity.If you're not looking to buy real estate or do REITS (assuming LP syndications are a no-go?)

Regardless of the reason, the delay in investing actually creates a compounding effect impacting one’s potential ability to reach the full investing benefit.The easiest way to understand this is by looking at the Rule oF 72.

This is certainly text book and absolutely the proper way to analyze a deal.Im not sure what he owes on the home but based on the payment and the year it was bought and the fact that its 20 min from Austin im just going to throw out 500K for conversations sake.500K compounding annually at 3% for 5 years comes out to approx $578,000, and you have the loan paydown aspect as well obviously.