Stagnant economy compounded by inflation.Resorts and vacation properties are going to take a hit in a stagnant economy.

My vote would be to let the tenants pay down your loan and use the cash flow to buy OTHER properties, compounding is a beautiful thing at scale.

If they are good deals you will compound your cash flow by using that capital on multiple properties.

According to my rudimentary math, I would need to earn about 21%  compounded annually, to gain the same dollars by keeping.

Interest is not compounded.

They fixed the front door NOT the back door and now the back door to your compound isnt latching properly?

But I think you're right - - That's not much money to make while enjoying the hassles that come with dealing with tenants, repairs, etc.I would say that it's a lot of money to LOSE for the privilege of dealing with tenants, repairs, lawsuits, damage done by tenants, evictions, government ignorance, etc.The good news is that you found BiggerPockets before you actually bought something and lost a bunch of money!

And how does compound interest work in real estate investing, if at all...Any other tips you could throw my way would be great.Chris 

Separate bank accounts for each LLC, separate annual filings, and in California, a "healthy" $800 tax bill annually (due from each LLC) for the privilege.

Unless it's compounded yearly, is that what your saying?