This isn't just a calculator; it's a powerful analysis tool. Here’s how to leverage its unique features:
1. Compare Multiple Scenarios
Use the Case 1, Case 2, and Case 3 tabs to model different investment strategies. You can compare scenarios like:
A higher down payment vs. a lower one.
An optimistic rent growth vs. a conservative one.
Different property appreciation forecasts.
2. Analyze Different Holding Periods
The results table automatically shows you the IRR if you decide to sell the property after 10, 15, 20, or 30 years. This helps you understand how your investment return changes over time.
3. Add Custom Time Periods
Have a specific exit strategy in mind? Use the "Add Year" feature above the table to see the IRR for any holding period you want, such as 5 or 7 years.
By comparing multiple cases across different time horizons, you can make a much more informed and robust investment decision. For a deeper dive into the core concepts, read our guide on Real Estate IRR.