Investor Real Estate Accounts

For real estate investors to keep track of their properties rental performance and tax information in one place.

Internal Rate of Return (IRR)

irr (internal rate of return)=leverage x (gross income-expenses-mortgage interest)/price. This measure the leveraged net investment yield without taking into account the mortgage principal repayments. It will be linked to cap rate by irr=leverage x (cap rate-mortgage rate). This number shows how the financing you obtained in increasing the property profitability. The difference with the cash on cash rates is the mortgage add-on rate, and this number shows the true profitability of the investment, and should be used for relative value computation.

This is one of the property key profitability measures.