The diagram below illustrates what can happen over time, depending on the direction of the market.The red line represents a declining market (where rents and prices are declining, constant or increasing below the rate of inflation) and the green line represents an appreciating market (rents and prices are increasing above the rate of inflation).

@Yonah Weiss, Thank you for bringing to my attention, the fact that I didn't clearly illustrate my role, and what I would be willing to offer a potential partner. - What I bring to the table: Besides finding the deal, I bring sweat equity to the project.

I'm just using this number to illustrate that homes aren't $80k here, nor are they $700k.)Occupation: My wife works within minutes (on foot) of where we live and loves her job.

Below is the map and illustration of how i manage my money now.

I know there will be people that get on here and illustrate how they landed a big investor or hard money lender from those meet ups.

@Jay Hurst can you please illustrate with an example with numbers/$$$ ?

If they will do a loan with less than 1, the pricing takes a hit.I've included an example below to help illustrate this.

The longer the term, the less of an impact on the rate.I've included an example below to help illustrate this.

The idea is that by deferring the taxation up front and on the earnings over time, you can balloon a small amount of annual contributions each year into a large sum from which you can support yourself in your retirement years once you have stopped working.This is, of course an oversimplified version, but should clearly illustrate the benefits of tax-deferred retirement savings.You can add to the above the ability to make contributions on a Roth basis and create tax-free income, as well as the ability once you change jobs to move an employer retirement 401k or TSP to a self-directed plan where you can invest those tax-sheltered dollars in things like real estate.If you are a physician, I would assume you create reasonably significant income, even if you work for the government.   

Your illustration should show 85-90% cash value to premium at the end of year one.