What Is Internal Rate of Return (IRR) In SFR Investing?
IRR measures annualized net return on equity, calculated as the discount rate where net present value equals zero.
Internal Rate of Return (IRR) is the measurement of annualized net return on an equity investment in single family rental property or other assets. It equals the discount rate at which the sum of the present value of all cash flows is zero.
The information in this article is for educational purposes only and does not constitute tax, legal, financial, or investment advice. Consult a qualified professional before making investment decisions.