But let's no compound the loss by filing a lawsuit.My advice to you is learn from this experience for the next time around. 

Jon was correct in his because he was calculating it as a 30 year amortization of compound interestMine is based on it being simple interest applied at the beginning then equal payments made until payoff.

Am I missing out on serious compound interest effects that will hurt me down the line, or is it smart to make sure I have the necessary cash if house hacking is the ultimate short term goal?

Michael Wentzel so you wouldn't suggest using a joint compound in the grooves?

The entity that these lenders put their money in, will in return give them 7% compound interest (not amortized).

Also, note that all cash flow numbers previously listed will be divided by two, and the following numbers are representative of YOUR returns on this investment.Price $440,000 [20%dn 4%int 20yr]                                                            5yrs                                                10yrsReturn on investment              $81,757 / 92.9%                        $203,594 / 231.4% Annual ROI                                       18.58%                                             23.1% ROI Compounded Yr/Yr                 14.04%                                             12.73%-------------------------------------------------------------------------------------------------------------Price $430,000 [20%dn 4%int 20yr]ROI                                                $87,486 / 95.9%                       $209,893 / 244%Ann                                                     20.35%                                          24.4%Yr/Yr                                                   15.07%                                          13.15%-------------------------------------------------------------------------------------------------------------Price $420,000 [20%dn 4%int 15yr]ROI                                                 $96,110 / 114.4%                     $225,271 / 268.2%Ann                                                        22.9%                                             26.8%Yr/Yr                                                       16.5%                                            13.92%There they are.

There are a whole lot of good reasons not to do that, as that Roth IRA is tax-free and once you take it out, it is gone and cannot compound tax-free wealth over the long term.An IRA can invest in property, but it would have to be a standalone deal where the IRA is the investor, not you. 

The compound effect of these are staggering.

In addition to reading up on real estate investing, I have also been doing some reading on budgeting and financing, and one of the things that were really eye-opening was the effects of compound interest.

Investing compounds and is a snowball, the earlier you start the better.