You put in $60,000; over 5 years you collected $24,000 in cash flow (8.0% cash-on-cash) and walked away with $150,000 at sale. Total back: $174,000.

That is a 2.90× equity multiple and an approximate IRR of 23.7% annualized.

Benchmark equity multiples: Most institutional rental syndications target 1.7×-2.0× over a 5-year hold. Solo BRRRR investors who refinance pulled all their cash out often see equity multiples that look infinite (you got every dollar back plus continued cash flow), which is why BRRRR is so attractive.

Equity multiple vs IRR: The multiple tells you the magnitude of return; IRR tells you how fast you got it. A 2× over 4 years is much better than a 2× over 10 years even though both have the same multiple. Use both together.

DSCR connection: Lower DSCR loan rates directly improve cash flow, which improves both the equity multiple and the IRR. A 0.5% rate reduction on a $300k loan saves about $1,500/year - over a 5-year hold that is $7,500 more cash flow on top of whatever appreciation does. Run the DSCR pricer to see your real rate before plugging the numbers in here.

IRR shown is a geometric-average approximation that assumes roughly even cash flows during the hold. For jagged cash flows (heavy rehab in year 1, partial-year leases, etc.) the actual IRR will differ; treat this as a directional number, not a closing-statement IRR.