How to calculate IRR on a 145 unit asset?

[Michael Norris]

I have a property package on 145 unit apartment complex. One of the potential investors wanted to know what the IRR was on the project. How can I calculate IRR on this 145 unit project?

[Steve Vaughan]

It's a GIGO formula. The best estimates of appreciation, rent rate inflation, tax benefits, COC, cashflow, etc are all you can plug in. If the inputs are garbage, so is the output. It won't be a definite hard number to bank on. Be sure and disclose that your numbers are estimates based on the best available data at the time.

Maybe some other pros (not that I'm one) that deal in large apts and syndication will chime in to help.  Do you have a lot of experience with this type of asset @Michael Norris?  Providing a few numbers may be helpful, too. Good luck!