The figure for without compounding makes perfect sense to me.For compounding, I took PPR's example, and calculated the annualized return:With the following numbers:A = $1,431,237.45P = $1,000,000.00t = 3This produced an annualized return of 12.68% over the 3 years with compounding.What am I doing wrong in this calculation (I'm certainly not a quant)?

All brokers and lenders get paid for their work so 0 origination means they are increasing the rate instead of being paid at closing which doesn't usually make sense as far as the total cost of the loan. 

Last but not least....A few members in replies have already mentioned why it makes sense to hold…….I very much appreciate ALL FEEDBACK, however I think it will be helpful to provide some added context as to why I am absolutely certain (and my CPA’s are convinced as well) on my decision to liquidate the entire portfolio and onceAs I educate clients on daily, income tax brackets as well as long term capital gain tax brackets in our country are more favorable right now than they've been at any point in the past 80 years.

If it's not feasible due to circumstances I suppose I'll have to adjust my situation (find weekend job, move back to NJ with parents, move to a different state with, etc.)All responses are appreciated, and I am absolutely open to chatting on the phone by the way.My view on house hacking is it can be a great tool to buy a house you could not  otherwise afford, but it shouldn’t be a goal in it of itself if that makes sense and that’s not to discourage you from investing just there are alternatives such as the stock market. so I’d start by asking where you want to live, do you want to own a single family home or does it make more sense to rent in a more interesting neighborhood like Arlington, Alexandria, that’s gonna be a personal choice, Will your monthly payment actually be less than renting/how many people do you need to get in the house to afford that?

Sourcing of funds is 100% required, every time.Makes sense, but I don't buy traditional mortgages because I invest in large commercial properties which are outside of standard loans anyway.

In the end, it would have made more sense to hire a couple handymen for a week or two than me spending 3 weeks installing flooring, base and case.

This helps you determine what offer makes sense to you.

So I suppose, I'm looking to invest in any area that makes sense with the numbers. :)

Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k!

And since I would like to go back to it being a STR when some of my life calms down in a year or 2, it doesn't make tons of sense to get rid of it all and then start again!