I'm looking to improve my "deal sense" and am wondering about simple mental math calcs I can do to get a sense for returns when talk about deals?
For example: Entry cap+constant growth rate=IRR (assuming same exit cap). So buying at a 5 cap with 3% growth over the hold period and exiting at a 5 cap would earn an 8% IRR.
Are there are other calcs I can do to get a sense for how leverage would affect IRR? Or how IRR might change with exit cap expansion/compression? Or any other tricks generally to get a sense for how a deal might return?
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