$14,295,000
Investment Summary
- Monthly Cash Flow
- -$74,148
- Cap Rate
- 0.1%
- Cash-on-Cash Return
- -27.1%
- Debt Coverage Ratio
- 0.01
- Internal Rate of Return (5 years)
- -22.1%
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
Nestled in the prestigious Upper Canyon of Silverleaf, this magnificent 2.22-acre estate, designed by Candelaria, constructed by Argue Custom Homes, and enhanced by Allhaus, is a testament to luxury living. It boasts breathtaking views of the McDowell Mountains and sweeping vistas of the valley. A dignified French Estate, it is securely positioned beyond the coveted Silverleaf guard gate, down a secluded, private road. As you approach, the serene sounds of an exterior fountain welcome you, setting the stage for the tranquil Scottsdale desert ambiance. The entrance, marked by an impressive limestone arch and exquisite front door, Rich wood beam details, and views leading to a resort-like backyard. The main level offers a variety of entertainment spaces, both formal and informal, including a private office, a luxurious master retreat to the west, and three additional en-suite bedrooms to the east. The formal dining and living rooms feature disappearing glass windows, seamlessly blending indoor and outdoor spaces. These rooms provide stunning views of the sparkling pool and expansive grass area, which descends to a two-bedroom guest house, rivaling the finest resorts in the valley. The bright, French-inspired chef's kitchen is an entertainer's dream. Equipped with top-tier appliances and a private butler's pantry, it's ideal for catered events. The kitchen opens to the family room - a "grand room" with soaring ceilings, an elegant entertaining bar, and a cozy breakfast nook with a private gas fireplace. The home's west wing is dedicated to the primary suite, beginning with an executive office. The suite features an oversized bedroom overlooking a private jacuzzi and outdoor fireplace. The suite gives a feeling that is reminiscent of the Silverleaf country club with two private bathrooms giving each partner their own generously sized space. The first bathroom you encounter is done in light tones with a standalone tub beside a beautifully decorated fireplace, it also features a large singular vanity, an expansive private closet, and shower that conjoins the two bathrooms. The secondary bathroom is done in darker tones and gives a Ralph Lauren feeling, with a walk-in closet done in dark wood and plaid carpeting. In addition, this portion features a bonus room/study that is the perfect place to rest and watch the game or could be a generous workout/peloton room or third closet. Ascend one of the three staircases to discover the home's entertainment hub, featuring a secondary bar/billiards room with stunning valley views, a private theater with a balcony, and the seventh en-suite bedroom, offering a kitchenette and separate entrance. On the south side of the property your guests can enjoy the beautiful 1,218 SqFt, two bedroom, two bath private casita. The casita features a French inspired kitchen with a La Cornue stove / oven, living room, laundry facilities, outdoor grill and a tranquil dining patio. The estate's grounds are a masterpiece of courtyards, balconies, and patios, blending seamlessly with the desert landscape. The motor court, accessible via a Porte Cochere, includes five spacious garage bays, one converted into an air-conditioned golf simulator - perfect for honing your skills before visiting the club. Don't miss this opportunity to own one of the Upper Canyon's most exquisite estates, a true embodiment of luxury and elegance.
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Location
Property Details
Parking
- Description: Covered, Garage
- Details: Garage Door Opener, Direct Access, Circular Driveway
- Garage Spaces: 5
- Spaces Total: 6
Bedroom Information
- # of Bedrooms: 7
Bathroom Information
- # of Baths (Total): 9.0
Interior Features
- # of Stories: 2
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Wood
- Roof Material: Tile
- Pool: Yes
HOA
- Has HOA: Yes
- Association: DC Ranch
- HOA Fee: $481/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 21708221
- Lot Size: 97013 sqft
Property Information
- Property Type: Single Family Residence
- Style: Santa Barbara/Tuscan
- Year Built: 2007
Tax Information
- Annual Tax: $44,401
Utilities
- Water & Sewer: Public
- Heating: Electric
- Cooling: Central Air
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$74,148
- Cap Rate
- 0.1%
- Cash-on-Cash Return
- -27.1%
- Debt Coverage Ratio
- 0.01
- Internal Rate of Return (5 years)
- -22.1%
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:
| $14,295,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$11,436,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $2,859,000 |
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:
| $428,850 |
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:
| $3,287,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 14,341 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $997 |
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:
| $0.50 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $11,436,000 |
|---|---|
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:
| 6.850% |
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:
| $74,935 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,700 |
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:
| $504 |
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:
| $79,139 |
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:
| $7,200 | $86,400 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$432 | -$5,184 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $6,768 | $81,216 |
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. | 51% | -$3,700 | -$44,401 |
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% | -$504 | -$6,048 |
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% | -$576 | -$6,912 |
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% | -$360 | -$4,320 |
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% | -$360 | -$4,320 |
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. | 7% | -$481 | -$5,772 |
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 | 83% | -$5,981 | -$71,773 |
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:
| $787 | $9,444 |
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. | -$74,935 | -$899,220 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $74,148 | $889,776 |