




$2,995,000
Investment Summary
- Monthly Cash Flow
- -$8,632
- Cap Rate
- 2.8%
- Cash-on-Cash Return
- -15.0%
- Debt Coverage Ratio
- 0.45
- Internal Rate of Return (5 years)
- -10.5%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Property Description
Welcome to Desert Fairways 12, in Desert Mountain, Scottsdale's premier private golf and outdoor recreation community! This south-facing, fairway-fronting 2,992 sf home comes with access to Seller's 'Seven' Membership in The Desert Mountain Club*. A full remodel, including exquisite furnishings and accessories, was completed in early summer 2024. Family changes are prompting an unexpected relocation, with the price well under owner's cost and market value. The furniture, accessories and housewares, almost all essentially brand-new and of highest quality, plus a considerable amount of hanging and table-top art, are being offered separately at a handsome reduction from recent original purchase price. The home offers 3 ensuite bedrooms and a powder room within its well-planned open plan. Desert Mountain is a thirty-eight-year-old, 8,200 acre, gated, master-planned community with about 2,000 homes in over forty different "Villages". Nearly built-out, there are only about 200 homesites yet to be built upon. It is in a noticeably quiet, serene, safe (manned entry gates; gates at each Village entry; security patrols) and beautiful location, spread east to west across the foothills of the Continental Mountains in the High Sonoran Desert on the northern edge of Scottsdale (the only thing north of Desert Mountain is the Tonto National Forest, fourth largest in the country), with homes at elevations ranging from 2,600' to 3,500' ASL. The various views these properties can provide are legendary ("city lights", "the McDowell Mountains", "sunsets", plus others, obviously including golf course views). Most owners are members of the Club (owning real estate provides the only path to any of several memberships). Its facilities include nine dining venues, seven golf courses, and various dining and other activities in seven different clubhouses. Virtually all of these members (who have come to the Club from Europe, the UK, Canada, and almost all American states, especially New York, Connecticut, California, Colorado, Oregon, Washington and the Upper Midwest) seem to have made socializing and having fun a key priority. There is a LOT to do and they "get after it"! * Upon application approval and separate payment to the Club of an initiation fee, the offered (and optional) Seven membership will entitle the holder to the use of all non-golf Club facilities, unlimited access to the eighteen-hole, Par-54, course known as "Seven" (rated for handicap purposes), up to six rounds per year on Desert Mountain's other six championship golf courses as a guest of a Member, and is upgradeable to a "Full Golf Membership" on a waitlist basis. (Ask Desert Mountain Club for full details). One of the clubhouses, the "Sonoran Clubhouse" is where most of the non-golf and non-hiking trail activities are concentrated: swimming (three pools); tennis (nine unlighted courts including three hardcourts, five Har-Tru, and one grass); fitness (equipment, classes, personal trainers, yoga, etc.); sixteen unlighted pickleball courts; bocce; complete spa services; two golf croquet courts; and an extensive outdoor playground for little people. Close to twenty-five miles of nicely groomed hiking trails await in the mountains at the back of Desert Mountain, reaching Butte Peak, at 4,823' the highest point in Scottsdale. An amazing "country club for dogs", the "Bark Park", was built recently near the Cochise-Geronimo Clubhouse. The restaurants include Constantino's; Café Verde; Angelo's; Arizona Grill at Outlaw; Cochise-Geronimo; The Hideout at Renegade; Seven; Apache; and the Range House at CG. Considerable recent and ongoing investment in keeping Club facilities state-of-the-art, has been and will be funded out of general funds, not assessments. There is no fee for exiting the membership structure. The Front Gate of the community is typically about a forty-minute drive to Phoenix Sky Harbor airport, and perhaps twenty-five minutes to Scottsdale Airport, where many members come and go by private aircraft. Otherwise, nearly seventy bars and restaurants are within about a fifteen-minute drive of the Front Gate in Scottsdale, Cave Creek and Carefree. Major league and collegiate sports, fabulous medical care (including the Mayo Clinic and hospital), and a wide variety of cultural attractions, are all within an hour. Skiing is about two hours away in Flagstaff. The Grand Canyon, Lake Powell and Las Vegas are all four to five hours away. California beaches are about six hours away. Another positive is low real estate taxes, strikingly lower than many places in the Northeast, Midwest, or West Coast. 2024 taxes on this home were only $3,429.42. Desert Mountain's weather is famously dry and sunny. Our risk of natural disasters is extremely low. Being higher and somewhat removed from the city means the stars are bright at night, the air typically much cleaner, and the daytime high temperatures about ten degrees cooler than the Valley floor, every day of the year. Summers are very enjoyable since it only gets over 100 degrees only about ten or twelve days a year here, compared to ninety days downtown. At night in the summer, the temperatures drop fifteen to twenty degrees, a significant difference from life on the Valley floor. You would be amazed how comfortable 95 degrees is at night or in the shade. So, being in Desert Mountain on a year 'round basis is an attractive proposition. "Paradise" does not overstate what Desert Mountain is for the people who get to live here. Some of the details you might not notice include: a separate storage room off the (air conditioned) garage, rubber tiles on the garage floor, on top of a durable epoxy coating; overhead heaters on the patio, along with a misting system handy for cooling people off on the back patio; a golf course location, but not in a tee shot landing zone and with a cart path on the other side of the fairway, itself somewhat distant form the back patio; no interior steps; a wet bar that includes a hand-hammered copper sink, a small, under-counter refrigerator, and a dual zone wine cabinet; dual vanities in two bathrooms; terrific art lighting; great electronics throughout the home including being able to control the shades via voice command; high-end (Wolf, Viking, Cove) appliances in the kitchen; LG ThinQ washer and dryer in a laundry/utility room with natural light; an extensive security system including installed cameras; upscale tile flooring on the pool deck; an extra-cost, tongue-in-groove wooden ceiling system on the high, gabled roof ceiling of the Great Room; various uses of onyx (and some cool backlighting of it!) for countertops and facings; dual vanities in two of the three bathrooms; a firepit on the back patio; a pool for swimming laps; many mature trees around the back patio that create a verdant, "cool" setting; and a very high level of home maintenance due to having a professional property manager looking after things. Thanks for your time. If this home and Desert Mountain sound like a possible fit for you, we hope to hear from you!
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Location
Property Details
Parking
- Description: Attch'd Gar Cabinets, Electric Door Opener, Side Vehicle Entry, Permit Required, Shared Driveway
- Details: Garage Door Opener, Permit Required, Shared Driveway, Garage Faces Side
- Garage Spaces: 2
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 3
Bathroom Information
- # of Baths (Total): 4.0
Interior Features
- # of Rooms: 5
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Wood
- Roof Material: Tile, Foam, Rolled/Hot Mop
- Pool: Yes
- Pool Community: Yes
HOA
- Has HOA: Yes
- Association: Desert Fairways
- HOA Fee: $764/semi-annually
- Additional Association: Desert Mountain
- Additional HOA Fee: $1,035/semi-annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 21956718
- Lot Size: 16173 sqft
Property Information
- Property Type: Single Family Residence
- Style: Contemporary
- Year Built: 1997
Tax Information
- Annual Tax: $3,429
Utilities
- Water & Sewer: Public
- Heating: Natural Gas
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details

Investment Summary
- Monthly Cash Flow
- -$8,632
- Cap Rate
- 2.8%
- Cash-on-Cash Return
- -15.0%
- Debt Coverage Ratio
- 0.45
- Internal Rate of Return (5 years)
- -10.5%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Purchase Details
Purchase PriceThe price paid for the property. Purchase price:
| $2,995,000 |
---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$2,396,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $599,000 |
Closing CostsFees and expenses associated with purchasing a property, typically ranging from 2% to 5% of the home’s purchase price, paid at the end of a home purchase to cover services like lending, title transfer, and taxes. Closing costs:
| $89,850 |
Rehab CostsCosts incurred to repair or improve the property, including: roof, flooring, exterior siding, kitchen, exterior paint, bathrooms, etc. Rehab costs:
| $0 |
Initial Cash InvestedThe total initial cash invested in the property. Calculation:Down payment + Buying costs + Rehab costs Initial cash invested:
| $688,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 2,992 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $1,001 |
Monthly Rent Per Square FootMonthly rent divided by the number of square feet. This ratio helps investors compare rental income efficiency across properties, markets, and unit sizes Calculation:Monthly Rent / Square Feet Monthly rent per square foot:
| $3.68 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $2,396,000 |
---|---|
Loan to Value Ratio (LTV)Loan amount divided by the market value of the property. Calculation:Loan Amount / Market Value
Loan to value ratio:
| 80.0% |
Loan TypeThe type of loan (e.g., fixed, adjustable).
Loan type:
| Amortizing |
TermThe loan repayment period in years.
Term:
| 30 years |
Interest RateThe percentage a lender charges on the borrowed amount of a loan, determining the cost of borrowing money.
Interest rate:
| 6.810% |
Principal & Interest (PI)The principal is the portion of the loan payment that reduces the loan balance. The interest is the lender's charge for borrowing money. Calculation:(P * r * (1 + r) ** n) / ((1 + r) ** n - 1) Where:
P = Loan amount (principal)
Principal & interest:
| $15,636 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $286 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified.
Insurance:
| $770 |
Private Mortgage Insurance (PMI)A fee that borrowers pay when they take out a conventional loan with a loan-to-value (LTV) ratio above 80%.
Private mortgage insurance (PMI):
| $0 |
Monthly PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. Monthly payment:
| $16,692 |
Operating Income
% Rent | Monthly | Yearly | |
---|---|---|---|
Gross RentThe total rental income received from tenants before deducting any expenses. Includes base rent, late fees, pet fees, parking fees, and other recurring charges.
Gross rent:
| $11,000 | $132,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$660 | -$7,920 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $10,340 | $124,080 |
Operating Expenses
% Rent | Monthly | Yearly | |
---|---|---|---|
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services. | 3% | -$286 | -$3,429 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified. | 7% | -$770 | -$9,240 |
Property ManagementThe costs associated with hiring a property manager to handle the day-to-day operations of a rental property. Includes management fees, leasing fes, eviction fees, etc. Calculation:Assumes 8% of gross rental income. | 8% | -$880 | -$10,560 |
Repairs & MaintenanceOngoing costs for routine upkeep and minor fixes needed to keep a property in good working condition. Calculation:Assumes 5% of gross rental income. Varies by property age and condition. | 5% | -$550 | -$6,600 |
Capital ExpensesLarge, infrequent costs for major improvements or replacements, like a new roof, HVAC system, or appliances. Calculation:Assumes 5% of gross rental income. Varies by property age. | 5% | -$550 | -$6,600 |
HOA FeesRegular dues paid to a Homeowners Association for community maintenance, amenities, and management. Similar fees include: Condo Association Fees, Co-op Maintenance Fees, etc. | 3% | -$300 | -$3,600 |
Operating ExpensesRecurring costs required to maintain and manage a rental property, including property taxes, insurance, maintenance, repairs, utilities (if paid by the owner), property management fees, and other day-to-day expenses. Calculation:Insurance + Property Taxes + Property Management + Repairs & Maintenance + Capital Expenditures + HOA Fees | 30% | -$3,336 | -$40,029 |
Cash Flow
Monthly | Yearly | |
---|---|---|
Net Operating Income (NOI)The income generated from a property after deducting all operating expenses but before deducting mortgage payments, taxes, and capital expenditures. Calculation:Gross Operating Income - Operating Expenses
Net operating income:
| $7,004 | $84,048 |
Mortgage PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. | -$15,636 | -$187,632 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $8,632 | $103,584 |