Generational Wealth
The Compounding Modeler
Pick your assumptions — starting capital, borrowing cost, cap rate, time — and watch levered multifamily 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 Multifamily Group — Compounding Illustration
These figures are illustrations based on the assumptions shown. They are not a projection, a guarantee, financing advice, tax advice, or a recommendation to buy or sell. Lending terms change and depend on your specific circumstances. Consult your lender, accountant, and legal counsel. McKinney Multifamily Group — Liam McKinney, Broker · Managing Partner · 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 the assumptions shown; in Simple mode the model also assumes 75% loan-to-value, 30-year amortization and 2.5% annual NOI growth. 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.