Not only are you building equity, but if you buy right, you should have very little out of pocket expenses and 'living for free' which will tremendously help you compound your capital and save for the next one. 

I heard average renewal rent is 4% nationally, which is certainly not keeping price growth compounded with rate increase. 

It takes DECADES for interest to compound and make any difference.I just leave savings in a dedicated checking account.2 hundredths of a Percent interest for 15-20 months doesn’t really matter-I avoid the stock market personally, right now, because I feel there is a high risk of a correction and low reward of increased value of the account due to market appreciation.

The most valuable thing there is in life, is your knowledge...and in REI that value is compounded, and yet...?

So in a period of 30 years of compounding, the highest return got you 10 doubles, and the lowest 3 doubles.

I also found within 14 months that some deals will go full cycle in much shorter timeframes which allowed me to reinvest, take advantage of more depreciation benefits, and see the power of compounding through some of the tax efficiencies provided by real estate.Diversifying Across Multiple Asset ClassesUp to this point, I had invested exclusively in multifamily, so it was time to start diversifying across multiple asset classes.

The cash value in your policy continues to compound at 5.6%-6% (4% guaranteed, 1%-2% dividends) for the full amount. 

The power of leverage becomes even more beneficial in the following years as your profits increase at a compounded rate. 

Your $30,000 investment compounded at an 8% rate and is now worth ~$302,000.

There have been multiple studies that show putting money into your retirement accounts early on has a HUGE impact on growth potential by the time you reach retirement because it continues to compound tax-free year over year.