Generational Wealth
The Compounding Modeler
Pick your assumptions — starting capital, borrowing cost, cap rate, time — and watch levered multi-family equity compound. The driver is the spread between what a building earns and what its debt costs.
Three engines run at once in a levered building: tenants retire the debt, the building pays you to hold it, and growing income pulls value upward. This model lets you watch all three work on your own assumptions.
McKinney Realty — Compounding Illustration
These figures are illustrations based on the assumptions you entered and generalized program parameters. They are not a projection, a guarantee, financing advice, tax advice, or a recommendation to buy or sell. CMHC program criteria, lending terms, and tax rules change and depend on your specific circumstances. Consult your lender, accountant, and legal counsel. McKinney Realty — Liam McKinney, Broker, Property.ca Inc., Brokerage · Sean McKinney, Broker of Record, RE/MAX Quinte Ltd., Brokerage.
At these assumptions this building would not qualify for financing at this leverage — an illustration only.
These figures reflect only the assumptions you selected. They are an illustration of a mathematical mechanism, not a projection of investment performance, and are not financial advice.
Principal paydown. Rent retires debt — every payment your tenants fund converts a slice of the loan into your equity.
Cash flow. What the building earns above operating costs and debt service, held uninvested at 0% in this illustration.
Appreciation. As income grows, value follows at your cap rate — growth working on the whole building, not just your share of it.