IRR on no money down deal

[Vlad Selsky]

Hi,
First time post here.

I am interested in buying a condo rental property in the Boston area. Mo

st buildings have low owner occupancy so I wouldn't qualify for a traditional loan.

I have another rental condo that is fully paid out. I am cleared to do a reverse cash refi, so I can draw on $275K at 4.125%. I can also draw on another $70K cash savings if necessary.

If I find a property less than $275K, is it a no-brainer to pay for it in full? And having done that, I'm having trouble with my IRR calculator. Assuming initial investment of zero and theoretically selling the property after 5 years, I'm getting a crazy IRR. Here are my net cash inflows: year 1 - 1604; year 2 - 1811; year 3 - 2027; year 4 - 2266; year 5 - 22,325 (these are just some numbers from a representative MLS listing). What is the IRR on this?

Thanks,
Vlad