The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

You can make certain assumptions about a property based on photos, permit records, and year built.

Your third assumption is correct.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

If the parts of your budget are true and not made of assumptions you can easily proceed.

It turns out that for a year, minus the first "dead" month, I assume to extract a return of $12,000 (I also deducted one additional month based on the assumption of the necessary "additional investments" in repairs annually): $1,200 * 10 months = $12,000.Cash-on-cash return = Real estate income received for the year before taxes/amount invested.

Scroll about halfway down, it updates weekly with best case scenario average commercial mortgage rates (the only thing not "best case" is that it's not making a net worth >$100m assumption).

They then make assumptions that you are capable of taking 100% of the added depreciation, which may or may not be true.

Which is your choice, thank you for sharing what you have(shows you want to make changes), but in order to give a good assessment I’ll make some simple assumptions and ask you these simple questions; Do you have a personal budget?