$2,700,000
Investment Summary
- Monthly Cash Flow
- -$10,727
- Cap Rate
- 0.9%
- Cash-on-Cash Return
- -20.7%
- Debt Coverage Ratio
- 0.16
- Internal Rate of Return (5 years)
- -16.0%
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
This is the kind of house that makes you rethink your goals! Step into luxury in this newly built (2023) 5,665 SqFt 5 Bed + 4.5 Bath custom estate by Starwood Homes, set on spacious half acre cul-de-sac lot in the sought after gated community of Avalon. Soaring 24ft coffered ceilings & hand crafted details set the stage for this spectacularly designed home. The executive kitchen is a chef's dream & the heart of the home, where everyone gathers to connect. Boasting Thermador professional appliances, sophisticated custom cabinetry, a massive 12'+ island, breakfast dining area w/ Thermador built in coffee machine, and one of the most thoughtful design aspects of the home...the incredibly spacious butler's pantry, complete with full-size refrigerator, Scotsman Sonic nugget ice machine, dishwasher, prep sink and even a media closet for all things tech. Relax or host in the oversized great room, where a 16' glass will sliding door opens to the backyard for indoor/outdoor living and a 72" elegant fireplace that is set in an eye catching stacked stone centerpiece accent wall. Take your entertaining to the next level in the formal dining room that's anchored by stunning Restoration Hardware deco-art lighting feature, a beautiful temperature controlled wine room and French doors that open to the courtyard. The elegant primary suite boasts cozy fireplace, Restoration Hardware lighting, French doors that lead to the backyard, beverage fridge, custom crafted closet + full custom cabinet storage wall that makes organizing a breeze! The luxurious, resort-inspired bathroom is one that you dream of! Custom dual vanities, walk-through shower with dual shower heads and beautiful freestanding tub that is set next to stunning accent wall and designer lighting. The attached one bedroom casita/next-gen suite will make guests so cozy they may never want to leave! Casita boasts its own kitchenette with full size refrigerator, sink, living area, bedroom + bathroom with huge walk-in shower, washer/dryer and two sets of beautiful French doors leading to the front courtyard. You'll never not want to do laundry again in the gorgeous, oversized laundry room that comes complete with dog wash and gift-wrapping stations! Backyard landscape design has yet to be installed, so you can bring your vision to light on this blank canvas! With over 1700+ SqFt of garage space, complete with epoxy flooring, separate workshop space and insulation, you'll have plenty of room for all your cars and toys! Enjoy close proximity to Loop 202, 101, 25 min from Sky Harbor, Chandler's booming Price Corridor, home to Intel, eBay, Northrup Grumman, Orbital, Wells Fargo, Banner Chandler Regional & more! This one truly has it all!
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Location
Property Details
Parking
- Description: Garage
- Details: Garage Door Opener, Electric Vehicle Charging Station(s)
- Garage Spaces: 5
- Spaces Total: 4
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Total): 5.0
Interior Features
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Tile
HOA
- Has HOA: Yes
- Association: FOCUS
- HOA Fee: $292/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 30336957
- Lot Size: 22144 sqft
Property Information
- Property Type: Single Family Residence
- Style: Ranch
- Year Built: 2023
Tax Information
- Annual Tax: $1,706
Utilities
- Water & Sewer: Public
- Heating: Natural Gas
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$10,727
- Cap Rate
- 0.9%
- Cash-on-Cash Return
- -20.7%
- Debt Coverage Ratio
- 0.16
- Internal Rate of Return (5 years)
- -16.0%
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:
| $2,700,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$2,160,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $540,000 |
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:
| $81,000 |
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:
| $621,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,665 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $477 |
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:
| $0.64 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $2,160,000 |
|---|---|
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:
| 5.875% |
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:
| $12,777 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $142 |
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:
| $252 |
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:
| $13,171 |
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:
| $3,600 | $43,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$216 | -$2,592 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,384 | $40,608 |
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. | 4% | -$142 | -$1,706 |
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% | -$252 | -$3,024 |
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% | -$288 | -$3,456 |
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% | -$180 | -$2,160 |
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% | -$180 | -$2,160 |
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. | 8% | -$292 | -$3,504 |
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 | 37% | -$1,334 | -$16,010 |
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:
| $2,050 | $24,600 |
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. | -$12,777 | -$153,324 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $10,727 | $128,724 |