capital outlay--it was cash-flow positive through the whole process. There are other ways to account for debt--IRR is not one of them aside from where it requires capital. For instance period 1=-50000, period 2=2000 and so on. The initial amount is typically a down payment and closing costs as well as rehab costs. Most people cannot obtain 100% financing from a bank and so there is always an initial negative outlay which is the capital investment. Most commercial projects will require between 30-50% of the project in terms of initial capital investment. It appears that we are going to have to agree to disagree regarding this because it is what it is.