Projection assumptions
10-Year Total Return
Your estimated average return per year over a 10-year hold, blending cash flow, loan paydown, and appreciation — not just the rent you pocket today.
8–12%/yr is a solid long-run target for a leveraged buy-and-hold. It leans on appreciation and rent-growth assumptions, so treat it as a projection, not a promise.
Why 10-Year Total Return matters
Cash flow alone undersells a rental: a deal that's near break-even today can still build real wealth through equity paydown and appreciation. This number is the closest single figure to 'what will this actually earn me long-term.'
Related terms
IRR (Internal Rate of Return)
Annualized return over the full hold period, including cash flow, principal paydown, appreciation, a…
Cash-on-Cash Return
Annual cash flow ÷ total cash invested (down payment + closing + rehab). Tells you how hard your mon…
Appreciation Rate
Annual property value increase. Historical US average ~3.5%; varies dramatically by market.