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Year 1 Actual & Taxable Cash Flow

• Year 1’s Cash on Cash flow is $20,449.62, or an 8.2% return on the Cash Down Payment of $249,480.00.  The tenants have kindly paid down your principal by $5,109.20 for the year increasing your return to 10.24% on the CDP.
• If we factor in a 3% appreciation increase in value of the investment of $24,948.00 for a total IRR of 20.24%.
• The Taxable Cash Flow in the first year actually provides a small reduction in taxes being paid from other sources of income, raising the IRR to 20.26%.
• This investment will provide a total cash return, in the first year, of  $25,602.37 or 10.26% of CDP.