You benefit from the appreciation of the exisitng assets, and keep compounding wealth

You can continue to compound the growth of your portfolio while deferring your taxes.You are looking to diversify your assets: You can exchange your property for a different type of property - commercial space, residential home, apartments, etc.When to consider utilizing both strategies?

Obviously you will lose out on the compound effects in your TSP while the loan is out.

This cash should be reinvested into the S&P 500 or something with stronger returns since real estate has no compounding effect like stocks do. 

Either way, it lets you reinvest the same investing capital over and over.Just start looking for ways to boost her savings rate and start investing every penny possible for compounding returns.

Leverage allows you to compound your money at a rate much higher than any savings account.

I bid aggressively on one house but eventually bowed out and went home empty handed.  

Over the span of 5 years you will have paid $77,220 towards rent.However, you’re $22,500 downpayment invested into the S&P index fund at our assumed rate of 10.13% compounded annually will be worth $36,236.48Leaving you a net living cost of $36,236.48 – $77,200 = ($40,963.52)Overall numbers after 5 years of house hacking:Expenses include: Principal, Interest, Taxes, Insurance, Repairs/Maintenance, and Private Mortgage Insurance.You will have paid $164,239.76 towards your principal and interestYou will have paid an estimated $20,914 in property taxes and insuranceYou will have paid $5,400 in private mortgage insuranceYou will have paid an estimated $10,859 towards repairs and maintenanceFor a total expense of: $164,239.76 + $20,914 + $5,400 + $10,859 = $201,412.76However, here are the positives to your net worth: Appreciation, Loan Paydown, Rent payments from TenantsYou’re home will have appreciated to an estimated value of 560,7812 an increase of $110,782You will have paid down your loan by $26,742Your tenants will have paid $154,439 in total rentThe total benefits add up to: $110,781.87 + $26,742 + $154,439 = $291,962.87House Hacking net worth boosters minus expenses = $291,962.87 – $201,412.76 = $90,550.11(The home equity for year five is calculated using the downpayment + appreciation + loan paydown)House Hacking Vs RentingHouse Hacking net worth after 5 years: $90,550.11Renting net worth after 5 years: ($40,963.52)Leaving you a net worth benefit of $90,550.11 – ($40,963.52) = $131,513.63Here is a screenshot from our calculator on the difference in monthly payments between Renting vs House HackingThe winner is clear.

I think this has been compounded by social media and all the real estate gurus out there. 

Should we be giving a little more grace to the folks who have handed it in and admitted defeat, simply because they will not compound losses on those deals?