Spreadsheet Analysis Help

[Logan Crowder]

Hello all. Hoping some folks can give their two cents on the spreadsheet I built out and advise on any errors. The specific section of concern is the 10-year holding period summary.

This example is demonstrating buying a condo in Downtown Vancouver in 2011 for short term rental, selling end of year 2015 and buying two more units with the sale proceeds to hold for a further 5 years. this is being compared with someone who bought the same unit in 2011 but held all the way to year end 2020 instead of selling to reposition their investment. The person who sold and bought two more properties has a higher ROI and IRR than the other investor who just held.

Spreadsheet Link Here

I am hoping to get some feedback on if there are errors in the formulas used. ROI total is sum of 10-year cashflows, principal pay down and appreciation over initial investment back in 2011. I've been heads down in these spreadsheets for this whole week so want to make sure not missing any obvious mistakes.

Feedback on this statement would help to and if it is correct:

"IRR and ROI are so different as ROI is acting as if the debt pay down and appreciation are being realized whereas IRR is factoring those two returns aren't actually realized until end of year 10."