Refinance cash out: impacts on CoC and IRR

[Florent Breton]

Hey BBPers

I am 9 months into the renovation of a multifamily building. I have invested significantly on capital improvement and hope to recoup some of that investment when I refinance later next year. I have then few questions on the following calculations:

- Cash on Cash: as much as you factor in capital improvements expenses, do you also consider cash out from a refinancing as impacting your cash on cash ratio?

- IRR: same question for the Internal Rate of Return - Do you factor in cash from refinancing in your IRR calculations?

In a more broader way: how does cash out refinancing impact your multifamily financial performance indicators?

Thanks a lot

Florent