Average cash on cash

[Jimmy O'Loughlin]

I am using the Michael Blank Deal Analyzer to analyze an apartment deal. It’s looking very good, but there is one thing that confuses me. The average cash on cash jumps dramatically when I choose to refinance in year three (99% of money returned to partners) versus refinancing in year four (100% of money returned). Is there someone here who can help me understand that?

[Michael Reilman]

Originally posted by @Jimmy O'Loughlin:

I am using the Michael Blank Deal Analyzer to analyze an apartment deal. It’s looking very good, but there is one thing that confuses me. The average cash on cash jumps dramatically when I choose to refinance in year three (99% of money returned to partners) versus refinancing in year four (100% of money returned). Is there someone here who can help me understand that?

Also, to add on to Michael's comment, the SDA (I'm not sure which version) changed the COC to IRR when the returned capital on a refinance is 100%. This is due to the COC effectively becoming infinity, since you or the investors no longer have you original investment in the deal. There is a note in the Summary tab that should pop up and say this.