So compounded over 27 years, the appreciation rate is more like 4.4%.  

The amount of corporate chaos and nonsense seems to be compounding year after year.

The rental income will compound and you will be on your way to larger properties.

Interest is compounded semi-annually, not in advance, but only on residential financing and then, not on all product types. 

But taking the powerful compound interest effect (which btw doesn’t come with REI) into account, the annual returns are actually much higher.

For anyone interested in buying or selling a property in Indianapolis, particularly in revitalizing areas such as Fountain Square and Fletcher Place, below is an Interesting article in this week's Indianapolis Business Journal about appraisals (see link).In short, with recent strong demand & price increases in some gentrifying neighborhoods, appraisers are quite cautious to give higher appraisal values for various reasons, including regulatory/legal reasons.Additionally, it is further compounded by the fact that sales prices and property values can change significantly in the matter of a few blocks in Indianapolis, so often it is very difficult for them to find true "comps".  

You get to invest 4 times your actual money in assets, and collect the compound on that.2.

If I wait 5 years on average to raise my rent I'd lose approximately a quarter million dollars over that 5 year period, ignoring any compounding effect. 140 doors x $33 increase x12 months x 5 years = 277,200.00.I am not in this business to give up $55k a year so my average tenant can save 33 bucks a month.

That benefit compounds nicely if you go buy another home owner-occupied to live in for some time, move out of the first one, rent out the first one and enjoy the same benefits all over again!

Inflation has averaged 3.67% over the last 30 years (source: http://data.bls.gov/cgi-bin/cpicalc.pl, plug in $1 in 1979 and get $2.95 now = 3.67% compounded annually.)