Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

10% IRR Minimum: Real Estate Deals & Tax Write-Off Secrets! #shorts

3 Jul 2026 · 1 min

Watch on YouTube

0:36

In this YouTube short, the speaker argues that any real estate deal offering an internal rate of return (IRR) below 10% is not worth pursuing, as such investments tend to function more as tax write‑offs than genuine cash‑flowing assets. He critiques common deal structures that feature absolute triple‑net leases with an assumed annual rental growth of only 2%, labeling this growth rate as too low. Instead, he recommends using a more realistic growth assumption around 3.5%, roughly matching inflation, to properly evaluate the long‑term profitability of a property.

Chapters

Honestly, there's nothing out there in real estate right now under 2 digits that's worth doing. So if your IRR, which is your internal rate of return, is not greater than 10%, it's not worth doing, right? This is literally more of a property setup for a tax write-off than it is for it to be a cash-flowing asset. It's not structured as a cash-flowing asset. So going through, it shows like the strengths have the long-term lease. Absolute triple net, annual rental growth at 2%. That's way too low. Typically it needs to be more like 3.5% or equivalent to inflation.