FYI if anyone is going to do the figuring the SF rents from 2009 to 2015 have increased over 15.5% compounded yearly.

Rick Perhaps the three of us can grab a coffee soon - except the coffee I've owed Rick now for over a year has compounded to at least a lunch by now, maybe more....  

Expensive and may not be worth it: Level it with self-leveling compound.

Even the big banks are bowing out of the mortgage lending space due to the higher costs of doing business.

Bank regulations simply would not allow FDIC-insured money to be invested in such a poor credit risk but the beneficiaries of the deceased man's mortgage deserved payment so they sold the non-performing mortgage to a Boise " Private Note Purchaser" for a small fraction of its face value because the heirs lived in a small community and did not want the infamy of being the ogres who would compound the misery of an unlucky family by seizing the home through foreclosure after the occupants had suffered the loss of their son to childhood disease.The Boise opportunist had no such inhibitions.  

At this point you will be living for free and making a steady investment that is compounding and building equity.

In addition to that, Syndication allows you to compound your money for years without paying taxes until the property is sold while generating a positive cash flow, so investments will be extremely tax efficient!

Say you put that 10k in and made 7% per year for 5 years and compounded it each year that equate to a 7% IRR for those 5 years precluded that your 10k was returned to you at the end of the period.

Any bowing or water coming in?

If the SM had a multiplier of 10%/year, and the RE had only 5%, if you did #1 above, you would end up with a return the first year of the following:     A - SM:  $120k x 10% = $12k;  New total = $132K     B - REI:  $600K x 5% = $30k;  New total = $630k...and, thanks to the power of compounding, every year after year 1, the spread between the two gets wider....in favor of REI.