$2,500,000
Investment Summary
- Monthly Cash Flow
- -$11,702
- Cap Rate
- 0.6%
- Cash-on-Cash Return
- -24.4%
- Debt Coverage Ratio
- 0.10
- Internal Rate of Return (5 years)
- -19.6%
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
Set on a pristine 3 acre parcel in the prestigious enclave of Lake Forest, this magnificent 10,300 square foot estate epitomizes luxury living at its finest. This home has been designed with timeless elegance and modern sophistication, this architectural masterpiece offers unparalleled craftsmanship. Step though the double doors into the breathtaking two-story foyer that sets the tone for this extraordinary home. Soaring 18-foot ceilings and marble floors make a dramatic first impression. The gracefully curved double staircase anchors the home. The great room is a combination of comfort and elegance, designed for both relaxation and entertainment. Anchored by a floor-to-ceiling stone fireplace, this expansive space also offers a sleek wet bar, complete with wine cooler. The heart of the home is a culinary masterpiece - a chef's kitchen designed for both functionality and grandeur. It features top tier Wolf and Sub-Zero appliances, large island and quartz countertops. In the middle of the home lies a magnificent library with built in bookshelves and intricate molding. Large windows offers serene views and plenty of natural light. This centrally located haven seamlessly connects the home's living spaces, making it perfect for both private study it intimate gatherings. Designed for convenience and versatility, the first floor en suite offers a luxurious retreat for guests or in-laws. This spacious bedroom features large windows, large walk-in closet and updated bathroom with marble accents. The 2000 sq ft. primary suite is a private sanctuary, redefining luxury and comfort. This expansive retreat features multiple walk-in closets along with fireplace, soaking jetted tub, Kohler therapy chamber and oversized shower. A balcony overlooking the estate's large backyard with mature trees and also leads down to deck and pool area. The second floor features three additional generously sized en suite bedrooms, each designed for comfort and privacy. These rooms feature large windows, large closets and updated bathrooms. These bedrooms are thoughtfully positioned around a central walkway, with easy access to the primary suite and upstairs sitting area, creating a harmonious flow for family living. With 5 expansive bedrooms and 8 elegantly appointed bathrooms, this home offers both grandeur and comfort in perfect harmony. Below the main level lies a a vast, unfinished basement spanning approx. 4300 sq. ft., offering a blank canvas for customization. This space is primed for home theater, wine cellar or fitness area. The expansive basement footprint provides endless possibilities to tailor the space to your unique vision. The estate also features a 4-car heated garage with EV hookup and new openers with smart technology. Outdoors this estate truly shines. Step onto the expansive deck with gazebo overlooking the resort-style pool surrounded by lush landscaping. The pool and the deck are perfectly integrated into the backyard design , enhancing the outdoor living experience. This is a RARE opportunity to own a home that offers both timeless elegance and modern amenities in one of the North Shore's most coveted communities.
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Location
Property Details
Parking
- Description: Garage
- Details: Asphalt, Garage Door Opener, Heated Garage, Garage, On Site, Attached, Driveway, Circular Driveway
- Garage Spaces: 4
- Spaces Total: 49
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Full): 6
- # of Baths (Total): 8.0
Interior Features
- # of Rooms: 10
- # of Stories: 2
- Basement: Yes
- Basement Description: Unfinished, Full
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Brick
- Foundation: Concrete Perimeter
- Roof Material: Asphalt
- Pool: Yes
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 1617201009
- Lot Size: 0 sqft
Property Information
- Property Type: Single Family Residence
- Style: Georgian
- Year Built: 1981
Tax Information
- Annual Tax: $37,625
Utilities
- Water & Sewer: Public
- Heating: Natural Gas
- Cooling: Central Air
Location
- County: Lake
Listing Details
Investment Summary
- Monthly Cash Flow
- -$11,702
- Cap Rate
- 0.6%
- Cash-on-Cash Return
- -24.4%
- Debt Coverage Ratio
- 0.10
- Internal Rate of Return (5 years)
- -19.6%
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:
| $2,500,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$2,000,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $500,000 |
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:
| $75,000 |
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:
| $575,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 10,330 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $242 |
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:
| $0.63 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $2,000,000 |
|---|---|
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:
| $13,052 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,135 |
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:
| $455 |
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:
| $16,642 |
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:
| $6,500 | $78,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$390 | -$4,680 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $6,110 | $73,320 |
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. | 48% | -$3,135 | -$37,625 |
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% | -$455 | -$5,460 |
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% | -$520 | -$6,240 |
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% | -$325 | -$3,900 |
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% | -$325 | -$3,900 |
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. | n/a | n/a | n/a |
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 | 73% | -$4,760 | -$57,125 |
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:
| $1,350 | $16,200 |
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. | -$13,052 | -$156,624 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $11,702 | $140,424 |