How to use IRR for real estate investing (and why not just cash flow)

748 viewsPublished: April 24, 20252m 53sScore: 80
Pricing & Profitability
intermediate
Profitability
Tax Strategy
Expenses
Bookkeeping

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.

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