I calculated the annualized return using the equation for simple interest(multiplied 5.6% by 52/3,) your calculation considered the interest to be compounded.

All of this is compounded by the fact it is an apartment building; meaning your odds are higher that someone there is overloading the circuits.

Gururs only compound the problem as they are always in search of some twist that can be turned into some product.

I'm not losing anything...I'm compounding my $36k.Why would I want to wait 20 years to get anything back?  

I have all four units rented and cash flowing nicely at the moment, and want to tap into the great resources of BP to learn more about what it will take for me to begin really experiencing the compounding effect of equity and cash flow in RE.

If you could borrow 50k for 5 years at 8% simple interest with monthly payments or 50k and 9% compounded annual interest, with no payments until one lump sum at the end of 5 years, which option would you choose and why?

If you are sitting waiting on a contractor to complete, inspections to be signed off on, repairs to be made and there is a time clause, mistakes will compound issues that may not be spelled out as far as the remedy is concerned in the contract.

that is really the main metric you can use.. the turnkey companies can only manage the properties but they cannot be in the assets 24 /7 and you get a bummer tenant and you now have an asset that does not perform as expected.. its not the turn key company its the Tenant that is the main cog in this.Also I have seen very poor owners over the years that have no business or clue how to be rental property owners.. they do not know or cannot imagine how others live and they freak out when some little thing happens and will bow their back on tenant issues only to have said tenant leave and create a vacancy.. and any vacancy is going to cost you money and ruin your numbers for that year.

There is a large "bow", if you will, in tow of the brick walls on the exterior of the house in the basement.

Do a "take off" of the materials you think you need (think drywall, take SF of the walls, ceilings, etc. and determine how many you need, how much compound, tape, corners, screws, etc...) and do the math.