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To test the sensitivity of the annual return on a real estate investment to the future reversion value of the property, one can use both the sensitivity analysis and the IRR partitioning.

Given several possible scenarios for future cash flows from an investment property, the variability of after-tax IRRs on the investment is higher with a lower downpayment.

It makes sense to have "cash out" as part of refinancing if the incremental cost of refinancing is above the return that can be earned on this money elsewhere over the remaining holding period of the property.

You should sell a real estate property if the after-tax IRR over the next several years is lower than the after-tax IRR over the past years since the property's purchase.

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