If you send the bank an extra principal payment (mark it as such) they cannot compound interest on that money. 

With compounding returns it is quite easy but...Brian BurkeI am curious about California.

So I spent $57k and received $64k.Side note: I realize that $172k - $105k - $2k equals $65k and not $64k, the $1k difference is a result of compounding rounding errors.Hope that clears it up for you.

Hey guys, I was curious if anyone has done a purchase or refinance on an STR in Broken Bow, OK, and if so, did the property appraise as rural or suburban?

That's better achieved with a drip campaign over time and a series of themes in you message that appeals to a specific problem or combination of compounded problems. 

However, you seem determined to head down this course of action and there seem to be plenty of people here to advise you on how to do it, so I'll respectfully just bow out of the conversation and you can do what you like.  

A lot is happening in this city & it's only going to compound.

That said, I expect expense ratio to be a little higher when averaged over the long-term, as CapEx and vacancy tend to be more costly after the first year than in the first year.I ran a quick IRR analysis of what my compounded return on this investment would be if I sold today at market price (including selling costs), and got somewhere around 18.4%. 

(Most of these tax experts, if not all, are completely unfamiliar with these incentives and requirements for compliance) Frankly this structure helped me retire quite a few years earlier than planned (imagine no tax, reinvest and compound) and recently I bought a beautiful property in Old San Juan to go there for fun every now and then.

As investors, we must understand the magic of compounding returns as well as seek higher yielding investments for our portfolio.Example:$100 for 30 years at 2% return = $182$100 for 30 years at 10% return = $1984$100 for 30 years at 18% return = $21,270 This math shows an exponential growth curve when you are invested in assets with annualized returns above 10%.