$350K Rental Property: −$7K Year 1 Cash Flow, 8.2% Year-10 IRR
Jake's $350K rental at $2,100/month: 3.65% cap rate, −7.7% cash-on-cash year 1, $594/month negative cash flow for 4 years. Year-10 IRR of 8.2% is the only metric that justified holding through it.