Annualized Total Return in BRRR Calculator

[Dave Brinkman]

I have been nerding out and digging into the various calculators to understand the numbers. Within the BRRRR calculator I don't understand why the denominator the first year for the annualized total return of the model is based on the cash invested to refinance, whereas every other year is based on the cash needed to make the acquisition.

I would have thought it would have been the opposite, where you base your initial return on the cash needed to acquire the property and then once you refinance base your returns on cash invested after refinancing.