[Calc Review] Help me analyze this deal for BRRRR

[Ajay Malhotra]

I used some basic assumptions like 10% for capex, 3% for repairs; the deal will update the kitchen and add a dormer turning the 3rd floor into a proper bedroom.

Why is the total annualized return constantly decreasing so much, and how could it possibly go significantly lower than the cash on cash return? I understand you have a huge appreciation / gain in year 1, but shouldn't it reach an equilibrium with the COC return, how can the annualized return become significantly less than the return I'm getting on the cash?

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