The strategy, consolidated
Portfolio Returns
Sell some buildings in year 1 to return equity fast, hold the rest for a decade of escalating cash flow plus an exit. One consolidated cash flow, one set of return numbers.
Strategy
5 held for 10 years
The workbook hardcoded “sell 1”. Here it is a lever — watch what each additional sale does to equity returned vs long-term profit.
Portfolio levered IRR
80.1%
Equity multiple (MOIC)
8.8x
Total profit (undiscounted)
$19,326,043
Equity invested (year 0)
$2,463,737
Consolidated cash flow timeline
| Year | Held NOI (5) | Held debt service | Levered CF | Sales (1) | Exit / equity | Total |
|---|---|---|---|---|---|---|
| 0 | $0 | $0 | $0 | $0 | -$2,463,737 | -$2,463,737 |
| 1 | $1,457,357 | -$1,071,230 | $386,126 | $3,384,000 | $0 | $3,770,126 |
| 2 | $1,501,077 | -$1,071,230 | $429,847 | $0 | $0 | $429,847 |
| 3 | $1,546,110 | -$1,071,230 | $474,879 | $0 | $0 | $474,879 |
| 4 | $1,592,493 | -$1,071,230 | $521,262 | $0 | $0 | $521,262 |
| 5 | $1,640,268 | -$1,071,230 | $569,037 | $0 | $0 | $569,037 |
| 6 | $1,689,476 | -$1,071,230 | $618,245 | $0 | $0 | $618,245 |
| 7 | $1,740,160 | -$1,071,230 | $668,929 | $0 | $0 | $668,929 |
| 8 | $1,792,365 | -$1,071,230 | $721,134 | $0 | $0 | $721,134 |
| 9 | $1,846,136 | -$1,071,230 | $774,905 | $0 | $0 | $774,905 |
| 10 | $1,901,520 | -$1,071,230 | $830,289 | $0 | $12,411,126 | $13,241,415 |
Read the IRR with care
Once year-1 sales return most or all of the equity, the net capital at risk approaches zero and later cash flows compound against a tiny base — the headline IRR becomes very large and unstable (small input changes swing it wildly). MOIC (8.8x) and total profit ($19,326,043) are the robust numbers for this strategy. The honest reading of a huge IRR here is "capital returned extremely fast", not a promise of 80.1% forever.