This would be much easier to understand if there was a downloadable spreadsheet with data filled in. That would allow us to play around with the numbers. Why not provide one?
great article! In your IRR formula example, are you considering $800/month as cash flow based on $1,000/month rental income? It is not clear to me whether the IRR formula accounts for the monthly expenses (mortgage payment, etc) of the property and thus cashflow should be used or whether it just uses the monthly rental payment. Thanks so much for the clarification!
