Internal Rate of Return (IRR) is the discount rate at which the Present Value of future cash flows equals the initial capital invested (. the discount rate at which the Net Present Value of a series of cash flows equals 0) expressed as a percentage. An IRR less than your targeted rate of return suggests you are paying too much for the property to get your targeted rate of return An IRR greater than your target rate of return suggests you could pay more for the property and still get your targeted rate of return
