All Forum Posts by: Stephen Greenway

The first year is figuring the "flip". Your projected sales price of $170,000 at a purchase of $145,000 skews to a larger return immediately. If you are able to find such deals on a regular basis then great keep at it. But the decreasing irr comes from holding the property and averaging more modest and sustainable cash flow returns over the long haul bringing down the initial "flip" return.