$2,500,000
Investment Summary
- Monthly Cash Flow
- -$13,187
- Cap Rate
- -0.2%
- Cash-on-Cash Return
- -27.5%
- Debt Coverage Ratio
- -0.03
- Internal Rate of Return (5 years)
- -22.5%
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
From the moment that you pass between the stone pillars of this landmark Grosse Ile property, you know that you have arrived somewhere special. The curved brick paver driveway leads you across the picturesque 3 acre lot to this majestic, historic home. This one of a kind home estate stands proud far from the road providing exceptional privacy and tranquility. Upon entering the nearly 10,000 square architectural gem, you are greeted with luxurious Italian marble flooring, breathtaking millwork, and a grand foyer beckoning you to the spectacular sun porch on the east side of the home for amazing views of the Detroit River, Canada, the Detroit City Skyline, and the Grosse Ile lighthouse. Originally designed and custom built for Charles Fisher of the Fisher Body Company of Detroit by the notable architecture firm Smith, Hinchman, and Grylls, you will appreciate the grandeur and fine architectural moments throughout this home. Soaring 12 foot ceilings feature various types of ornamentation including plaster medallions and astounding crown moulding. Meticulous design elements like cherubs, flora and fauna are coupled with robust materials providing a truly special living and entertaining experience. The large kitchen features a center island, wall oven, cooktop, a breakfast nook with built-ins, and full butler's pantry with a wet bar. Two formal powder rooms, a third half bathroom on the main floor is well suited for hosting guests. A paneled library with Jack and Jill entry offers privacy, storage with built-in bookcases, and functions well as an office. The formal dining room with a hand carved, wood fireplace is an expansive space with grand views of the Detroit River as you dine and entertain guests. The majestic formal living room also has views of the river, an exceptional carved carrara marble fireplace surround with egg and dart details and abundant room for furnishings and a Steinway baby grand piano. Moody paneled walls and coffered ceilings in the Florida room add warmth to the space surrounded by windows that flood the space with natural light. This room functions well as a family room with ample seating space, a fireplace, and a bronze chandelier that is simply a work of art. Journey upstairs to find 7 bedrooms, 6 full baths, and 3 additional half baths. Several bedrooms have their own, private, sunporch for enjoying the gorgeous natural scenery. The primary bedroom is massive with an adjoining dressing room, 2 separate full tiled bathrooms, and custom walk-in closets with beautiful built-in wardrobes. An enormous attic allows for plenty of storage space. The basement is equally impressive with terrazzo flooring, workshop space, a huge laundry room that doubles as a workout room, a full sized, walk-in vault that doubles as wine storage, and a Bilco door entry providing easy access for transporting large items. Outside, marvel at over 200 feet of river frontage for docking, enjoying water sports, fishing, and witnessing glorious sunrises, perfect for entertaining and hosting events. An illuminated brick paver path leads to a paver patio for outdoor enjoyment. A 6 car garage with carriage doors, attic for storage space, electric service, and a half bathroom round out this opulent property. This home is a time capsule of precision and craftsmanship that you must experience to appreciate. Don't miss out on the opportunity to make it yours. All of this and it is situated just over one mile to the toll bridge a half an hour to downtown Detroit. Agent is related to the seller. Pre-Approval required prior to showing.
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Location
Property Details
Parking
- Description: Garage
- Details: Garage Door Opener, Detached, Paver Block
- Garage Spaces: 6
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 7
Bathroom Information
- # of Baths (Full): 6
- # of Baths (Partial): 4
- # of Baths (Total): 12.0
Interior Features
- # of Rooms: 31
- # of Stories: 2
- Basement: Yes
- Basement Description: Crawl Space, Full
- Fireplace: Yes
Exterior Features
- Roof Material: Asphalt, Flat, Rubber
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 73005020005000
- Lot Size: 131203 sqft
Property Information
- Property Type: Single Family Residence
- Style: Colonial
- Year Built: 1928
Tax Information
- Annual Tax: $36,863
Utilities
- Water & Sewer: Public
- Heating: Natural Gas, Hot Water
- Cooling: Central Air
Location
- County: Wayne
Listing Details
Investment Summary
- Monthly Cash Flow
- -$13,187
- Cap Rate
- -0.2%
- Cash-on-Cash Return
- -27.5%
- Debt Coverage Ratio
- -0.03
- Internal Rate of Return (5 years)
- -22.5%
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:
| $2,500,000 |
|---|---|
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:
| 9,988 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $250 |
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:
| $0.39 |
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:
| 6.625% |
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:
| $12,806 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,072 |
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:
| $273 |
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:
| $16,151 |
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:
| $3,900 | $46,800 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$234 | -$2,808 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,666 | $43,992 |
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. | 79% | -$3,072 | -$36,864 |
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% | -$273 | -$3,276 |
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% | -$312 | -$3,744 |
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% | -$195 | -$2,340 |
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% | -$195 | -$2,340 |
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 | 104% | -$4,047 | -$48,564 |
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:
| -$381 | -$4,572 |
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. | -$12,806 | -$153,672 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $13,187 | $158,244 |