Real Estate Investment Performance Metrics

When evaluating the performance of real estate investments, investors often consider various metrics to determine the viability and profitability of their investments.

One key metric, the Internal Rate of Return (IRR), is particularly significant as it reflects the annualized effective compounded return rate that can be earned on the invested capital. However, when assessing real estate, especially in the context of varying market cycles, it’s crucial to differentiate between various income-producing real estate types and their associated risk-return profiles.

Which of the following types of real estate investment is most likely to provide stable income with lower volatility, particularly in times of economic downturn?