At a certain point with the BRRRR strategy and many others you engage the compound effect and enter an exponential curve.

Any wise words of wisdom to firmly but gracefully bow outta my contract?...

Primarily due to rate hikes (compounded by the lack of an adequate exit strategy) and subsequent market change but also exceeding our preliminary budget.

For example if I have $10,000 today, and I want it to be $100k in 6 years, what interest rate compounded will I need to get there.

Profit at that point: $125,400 ORLend hard money for 5 years at $220k at 10% annually: W/ compound interest, this would be worth $354,312Profit at that point: $134,312 Additional Notes: Strategy #1 is riskier (assuming no major repairs to house caused by bad tenants, evictions, 5% YoY appreciation, locking in the money). 

These types of tenants need a lot more attention than in a better area.To compound the issues, the property managers who operate in these areas are notoriously bad. 

Good choice :)Being able to start a journey of deferring that tax will compound for you as long as you keep the new properties or do a 1031 whenever you sell one. 

@Christopher Nerio - you've got a small mess here, but it's being compounded by the information you've received so far from others on this post.First of all, the boarder income is still traditional rental income - that is, passive income.  

Materials are not that expense (drywall, compound, paint, etc.), but labor may be. 

Balance Loan Algorithm, Front end loaded compounding interest charges, Time Value of Money no no Line daily average balance , simple interest yes yes