While it’s a helpful quick filter, the bigger picture—appreciation, tax benefits, loan paydown, and compounding growth—often tells a much better story over 5-10 years.The key is balancing cash flow and long-term gains.

That compounded over time, along with you becoming a seasoned investor can lead to 8-10% cash on cash returns over time. 

Quote from @David Kanarek: Quote from @Craig Salzer: I don't believe there is compounding. 

This situation can compound to you doing more jobs and getting more capital for the next deal, but then losing sight of really why you got the license which is saving money on flips and doing more of them because the margins are so great for you being licensed.

They different compounding effects.

You want a strong foundation that is compounding, not a house of cards with no base.2.

One thing that stands out the most to me is that compound growth is real.

If there is currently ceramic on the exiting floor, either remove it or scuff it up with a grinder to provide some 'tooth' for the compound to adhere to.These steps take a bit more effort, but the end result will look better and last WAY longer.Good luck!

Compounding interest is the best play. 

If you don’t like to read, listen or educate yourself than unfortunately you will likely not find much success (although I am sure there are those out there that have succeeded without).Rich Dad Poor Dad, Millionaire Real Estate Investor, Multi- Family Millions (Dave Lindahl), ABC’s of Real Estate Investing, The Book on Rental Property Investing, Hold, The Advanced Guide to Real Estate Investing, The Due Diligence Handbook for Commercial Real Estate, Millionaire Real Estate Agent, The Book on Managing Rental Properties (Brandon Turner), The Emyth RevistitedCrushing It in Apartments and Commercial Real Estate, Emerging Real Estate Markets ,The ABC’s of Property Management, Wheelbarrow Profits, The One Thing, Outliers, Start with Why, David and Goliath, Chasing Excellence, Extreme Ownership, The Compound Effect, The Entrepreneur Roller Coaster, Be Obsessed or Be Average, The 10x Rule, The Obstacle is the Way, Ego is the Enemy, Am I Being Too Subtle, 48 Laws of Power, Atlas Shrugged, Man’s Search For Meaning, Sapiens, Tools of Titans, Four Hour Work Week.Step 2 (financing): To get a better idea of what I was capable of purchasing, I met with four different lenders and began a relationship to acquire funding.