And the deal is very risky due to nature of the deal. 

Hi @Ray Danishyar this method sounds great.

However, there are alternative methods to this.

No one can explain where this is coming from except the sponsor, as the calculation, by nature, takes into account dollar amounts paid and timing of each payment.I.e. if you invested $50k and received $100k back in 4 years, and nothing in between, could would have one IRR, but if you invested $50k and received $25k every year for the next 4 years, you would have a different IRR.

I'm trying to avoid analysis paralysis here - but it just comes so damn naturally to me...

Today I was speaking with a friend about maximizing cash flow on my rental properties and he came up with a BRRR method minus the last R and I thought it seemed like a good idea.I currently have 2 rental properties and both are paid for.One is a small house that I have about 15k into and it cashflows about 500 per month.The other is a quadplex that I have about 70k into and it cash flows between 800 and 1500 per month (one room is an airbnb).

Found a property in beach area that is definitely overpriced (almost everything is) but with calculations of 70% occupancy high season and 50% low season , and other methods such as enemy method @lukecarl , the property STILL cash flows.

Any reasonable methods would be accpetable.

I have two areas I would like to go( wholesaling or house hacking with the BRRRR method) however I am someone that learns faster by seeing and talking about the minutia of process.

@Juhi Banerjee, appraisers for 2-4 units will use the same valuation methods as a single family home: Sales comparison, Income and Cost approach, with a reconciliation section to account for the variances.