Perhaps you guys can tag team this compound question.

This is due to the compounding benefit of the tax deferral through time.It can be hard to sustain the 4-7% advantage over time because it becomes almost impossible to keep all your properties 75% leveraged.

They get scratched, liquid spills will cause it to bow, over time they start bowing just because of general moisture in the air.

The impact if this compounding effect is staggering. 

With prop 13 they can only increase the taxable value by 2% compounded annually.

It appears it was a compound issue. i found where the teen of another tenant went to smoke in the attic.

This just compounded my problem.

.):  $954.Cash available after closing to move forward:  $23,697Holding onto Property, Speculating something (like winning the lottery) will miraculously save this deal:Losses every year:  $677.40Impact of holding property by year from losses on usable cash to move forward, Compounded Return of 10% if re-invested & Timeline to Recovering Losses:Year       Loss          Cash out            10%      New Cash      Remaining Loss Now     $24,647       $23,697         $2,370      $26,067           $-22,2771             25,324         23,030            2,607        28,674             -19,6702             26,002         22,363            2,867        31,541             -16,8033             26,669         21,696            3,154        34,697             -13,6474             27,340         21,029            3,470        38,165             -10,1775             28,008         20,332            3,817        42,082             -  6,3606             28,685         19,665            4,208        46,290             -  2,1527             29,362         18,988            4,629        50,919                2,477              ...

When you compare on an absolute basis it does not appear to be so bad, but relatively speaking 20% is a huge difference, especially when you compound that over 30yrs.

Essentialism and The Compound Effect for mindset.