Internal Rate of Return is a core metric for evaluating the profitability of income property investments. It's perhaps the one metric that accounts for the interplay between the magnitude and the timing of future cash flows.
From my experience, some investors are unclear about exactly what IRR is and how it’s calculated -- and even less clear about its levered and unlevered variations.
In this latest article in my "insights" series, I offer some examples and try to shed some light on these metrics.
Read about this and other topics for real estate investors at https://realdata.com/insights
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