Well, I hope you don't have 2+ hard money loans outstanding while you're flipping.What happens if your buyers can't access a loan in order to buy your properties? 

Then, a 15% appreciation in value for the SM is still less than a 5% appreciation in REI...and then there's the cash flow.Example #1:  Stock Market Cost:  $100k;  Face Value:  $100kAppreciation/year:  15%Face Value after 10 years:  $404kExample #2: Stock Market Cost: $100k;  Face Value:  $500kAppreciation/year: 5%Face Value after 10 years: $814k...reinvest the cash flow and the returns are in the millionsCome on Joe, we all know that you forgot an important number: The outstanding mortgage.

They obviously couldn't do that on outstanding balances.

lol....The initial cash flow in San Diego is poor but the actual cash flow is outstanding.

A HELOC only charges interest on your outstanding balance at the time.  

Any outstanding LOC probably wasn't paid on either.

After doing this a while, my fear is ending up with a turd more than the desire to get the extra extra outstanding perfect renter that will likely buy in a year anyway.  

I just still have an outstanding balance on them that will probably take me another 2-3 years to fully pay off.

Typical terms are that as each condo is sold after conversion, the bank gets paid first (paying down the outstanding balance) & the investor doesn't get the profit until the last few units are sold. 

@Judy Graff NORADA is outstanding, we provide properties for them in Montgomery and Huntsville.