And, they put joint compound over 1/4 plywood instead of drywalling it, just weird.

This adds up to -$300k in total rent spent over 10 years, for which you get zero deductions or equity.Scenario 2: Purchase your home in NYC- Take your 200k and lever it up to buy a $1mm property that's going to appreciate on average 4% per year in NYC, compounded, so $1mm x 1.04^10 = $1.480mm for a profit of $480k. - That entire gain is tax free, since it is your primary residence- Your monthly payments will be over 4k per month, but almost half of that is going toward your own equity and the other half is a tax write-off that reduces your taxable income and possibly brings you to a lower tax bracket.SUMMARY: I'm not quite ready to declare victory for purchasing your home in NYC, but I have to admit, I just convinced myself a tiny bit more.

But you miss out on return of the amount you take out (compounding interest).  

I am evaluating if it would make sense for me to move my 401k into a self directed IRA and use it to invest in a turn key property. The one thing that is bothering me is that I feel like I cannot use the profit for qu...

The only downside is that i will be loosing on compound interest until i pay it back.

It is hard to trust someone you have no relationship with to be responsible to get the job done, done right and not be over-charged - there are times when you don't mind paying a premium for a job well done.About 10 years I did a 1031 tax deferred exchange into a house on Amelia Island, (outside of Jacksonville), I am in Baltimore, we do have a person we trust to do our work - since we only get to our home compound a few times a year.So tell us............. how's real estate investing in Miami, Florida?

Great idea to get involved with RE investing early and reap the benefits of compounding appreciation, as well as cash flow.I'm a Retired USAF Officer & my Son is Retired Marine (Class of 91). 28 Years experience in Real Estate Sales & Management.

Compounding.. say it out loud.. go to a dividend compounding calculator and enter your numbers over a 30-40 year period.

Im currently in the finishing stages of my rehab & in need of a detailed scope of work for company I'm hiring to handle the painting, compounding , plaster & taping of the house.

I'm going to ignore compounding interest in the below to keep it simple.Example, made up terms/rates.12 month CD: 1%.