I am trying to figure out the best way to model cash flows for an acquisition that will have immediate cash flows. These are residential rental portfolios, so the day we acquire the property we begin "receiving"cash flow. Do I put the initial acquisition costs (the equity) in a separate year 0 column, then begin receiving cash flow in year 1, or should I include the acquisition costs in year 1? If I put them in year 0, wouldn't that make your irr incorrect, since it would assume a full year without cash flow....
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