Analyze cash on cash for the second year?

[Alex S.]

I'm trying to analyze a property and my CoC for the first year is 10%.

My cash invested is 100k (Downpayment + closing costs + rehab) and my cash flow is 10k for the first year.

Let's say I calculated that my cashflow for the second year is 12k

How can I properly account for the second year, taking into account the future value of money?

ps: I'm aware that internal rate of return (IRR) can help me estimate that but it assumes the whole value of the property (equity), while I want to exclude equity from the equation, as I'm not going to either sell or refinance the property in the first few years for sure and thus want to analyze cash on cash year over year for the first few years only.