How to use IRR for real estate investing (and why not just cash flow)
725 views8 months ago2m 53sScore: 80
Lydia Patel
Summary
The video explains the importance of using IRR (Internal Rate of Return) when evaluating real estate investments, particularly short-term rentals. It walks through an example property investment, demonstrating how to calculate IRR by factoring in cash flow, appreciation, loan paydown, and tax benefits over a five-year period using a spreadsheet and the IRR formula.
