Compounded 7% inflation will erode the value of your long-term, fixed-rate debt very rapidly.

The Bank of New York Mellon purchases the liens and offers them to their institutional clients at a rate of 18% compounded daily (check NYC.gov for tax lien laws).

Pour leveling compound over the rock to provide a flat surface, then install tile.

And with "time" on your side, the earlier you can start the more time you'll have to compound your long term growth.

I find people just starting out have to compound money at such a high rate that they are willing to take on a ton of risk and headache.

I am biased, and believe that for a patient person, leverage is the ultimate compound interest. 

It can be scary for those that are risk averse to a fault, compounded by the fact that all they know is that their Uncle Sherman rented to a meth head with 5 kids in one unit and a pit bull breeder with an anger problem in the other.

You're also doing the math in a way that suggests that as you collect your cash-flow, you'll let it sit in a bank at 0%, whereas your mutual fund option is reinvesting (compounding) every penny earned.

This is what I did and it was an amazing decision.REI, if done right, can easily return 25% or more in year one and over 6% compound growth because of appreciation and increase rent rate.

Real wealth in real estate is made by acquiring quality property in good locations and holding it over time and letting your money compound.