I have walls that were bowed when I moved in.

I'm aware of the compound investment concept where with more cash available to put into a new deal I'll also earn money on that investment and so on which leaves me substantially better off than just saving more money.

If lending tightens it could have a compounding effect.A lot of these shifts and bubbles are possibly in the trillions and just want to know what people's thoughts are as far as how big this could happen?

Also the Compound Effect by Darren Hardy

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. 

Generally I move my price up 20% and I make interest on the payment amount amortized, so I am getting compound interest.  

Compounding the problem for the higher end market in growing areas (like Katy) is the high tax rate.  

I'm a fan of the Roth's ability to tax you at the beginning, and then you keep the returns that compound for decades until retirement.

As far as if the other person decides to bow out I think at that point I would be good with some type of equity trade off assuming they would already be in the deal for at least a year or two.

*bow*