How key variables affect your IRR
IRR Heatmap
Cap Rate →
| Rent ↓ | 4.5% | 5.0% | 5.5% | 6.0% | 6.5% |
|---|---|---|---|---|---|
| +10% | 24.1% | 22.3% | 20.8% | 19.5% | 18.4% |
| +5% | 21.8% | 20.1% | 18.7% | 17.5% | 16.4% |
| Base | 19.6% | 18.1% | 16.8% | 15.6% | 14.6% |
| -5% | 17.2% | 15.8% | 14.6% | 13.5% | 12.5% |
| -10% | 14.8% | 13.4% | 12.3% | 11.2% | 10.2% |
Variable Sensitivity
Rent
Constr. Cost
Cap Rate
Vacancy
Base: 16.8%