IRR is more speculative in my opinion, however when doing a syndication or trying to get investors, it's vital to show them IRR so they can see their potential investment lifecycle.   

A lot of people will disagree with me, but once you understand the full financial picture over the life cycle of the investment including capex you will understand why some call it fools gold.

I pay 0% on the buy and 5% on the sell; so, 2.5% per transaction over the life cycle of the property. 

So a real long term life cycle beyond just the industrial spaces purpose. 

After this, we may consider the lifecycle of your investments, and the returns you have underwritten, to see if this makes sense with your personal investing goals.2) Sell the house and pay off your debt.

You need to establish the entire life cycle of the deal from acquisition to disposition.

I hope this is a fairly logical approach to take as real life can change factors randomly and we must ultimately cope with that as required.So, we must break down a scenario with only the essentials on the table:We have some undefined amount that can be applied to one loan at a time (for the sake of focusing on the efficiency principle).In addition to being an undefined amount it can also fluctuate in unknown amounts and directions (keeping real life involved).All loans are assumed to be fixed rate and amortized.All the loans are at different points in their life cycle of pay down.The loans could have had the same, different, or mixed original amortization periods.We will have 4 loans to prioritize (listed in no particular order) so we can work off the same example:A) Remaining principle $94,925, Interest rate 3.75%, Monthly payment $710B) Remaining principle $54,814, Interest rate 5.50%, Monthly payment $388C) Remaining principle $12,741, Interest rate 3.90%, Monthly payment $532D) Remaining principle $41,495, Interest rate 5.25%, Monthly payment $355Given the above information:Is there some fundamental flaw in looking at the question in this manner?

A Real Life Example To lend credence to the above, a recent example comes to mind regarding a modified bitumen flat roof that had already exceeded its statistical life cycle by somewhere around 5 years or more whereby the current owner and occupant of the property had come to realize that it would probably only be a matter of time before they'd begin to experience more problems with the roof resulting in leaks that could jeopardize the operation of the business not to mention that any additional repairs would essentially be a waste of time, money and resources in postponing the inevitable resulting in a recover or complete tear-off and replacement of the existing roof covering.

Summarize what you understand the life cycle of your project to be.

(not a bad thing)I completely understand that this has a max lifecycle per loan which is the entire amount of payments.