If I had outside cashflow to support this property that’d be fine but since I don’t I’d need to use the money from my W2 job which leaves me less money to invest in more properties thus making it harder to take advantage of compounding returns and thus exponential growth.

That compounded with none to negative cashflow is not my cup of tea.

Appreciation and rent growth have not been linear but in every decade at one point the figures match up in that the property has doubled in value and rents are up 6%+ compounded annually.

Please understand there is no "overnight" solution and it is a skill set that will flourish as your experience as an investor compounds; which it sounds like you are on your way to doing!

This is the manual input in your underwriting model that reflects the percentage increase your rents will grow each year.Unusually high organic rent growth inputs can be dangerous because it has a compounding effect.Organic rent growth has a compounding effect in your underwriting model.

To double one's money from 100 to 200 in 10 yrs , Real estate would say that's a 10% yearly return when it is actually a 7.2% annual return due to compounding effects (rule of 72).

You're also just riding the high(er) wave when it's up cause you're cashing out on the appreciation so no real compounding interest, imagine what  when it's down? 

Hi Rob Bowness. 

The real force at play here is that while you start with a lower rent amount vs mortgage, both rent costs and home values are inflating, yet the basis for the home inflating is much much greater, so it compounds at a much faster / larger clip.

Hi I am looking at a property in beaver county, and there is a bowing wall.