$3,295,000
Investment Summary
- Monthly Cash Flow
- -$14,988
- Cap Rate
- 0.8%
- Cash-on-Cash Return
- -23.7%
- Debt Coverage Ratio
- 0.13
- Internal Rate of Return (5 years)
- -18.9%
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 2 Cutters Run, a masterpiece of superior quality and opulence. This custom Mediterranean-inspired residence offers an unparalleled living experience, perfect for multi-generational lifestyle and grand entertaining. The dramatic front French doors invite you into a world of elegance, revealing a dazzling two-story formal living and dining area. Pristine balconies, intricate wood milling, and exquisite Alabaster chandeliers imported from Spain create an atmosphere of refined luxury. The main level boasts shimmering Venetian-yellow granite tiles leading to the vast chef's kitchen. Endless granite countertops, abundant cabinetry, and island seating are open to an expansive eating area and a welcoming family room. The secondary kitchenette has a Viking Professional hood and double oven along with a Thermador cooktop and grill. A serene ambiance of warmth is created with the home's eight gas fireplaces. Step outside to the 1,500 square foot concrete terrace and be captivated by the breathtaking waterfront views. A private pond pathway offers a tranquil escape, perfect for leisurely strolls. The regal study creates the perfect space for both reading and working with floor-to-ceiling custom wooden bookshelves. This elegant room offers a perfect blend of sophistication and functionality, ideal for those who appreciate an inspiring environment. Ascend the gleaming Brazilian cherry hardwood floors to the second level, where five oversized bedrooms and four full bathrooms, including a Jack and Jill arrangement and 2nd laundry room, await. 1st and 2nd level primary suites feature custom walk-in closets and spa-like bathrooms, offering a sanctuary of relaxation. The radiant heated basement tile flooring ensures comfort as you explore this gathering haven, complete with a wet bar, wine cellar, third full kitchen, sitting areas, bedroom, and full bathroom. A covered enclosed sub-deck with a wood-fired brick oven provides the perfect setting for outdoor entertaining. The property includes an eight-car epoxy-floored garage, heated on one side with convenient basement access. Located within walking distance to shops and fine dining at the Arboretum of South Barrington. Within close proximity to I-90 and O'Hare Airport, this home offers both luxury and convenience. Seize the opportunity to own this striking residence, where every detail has been meticulously maintained and crafted to provide the utmost in elegant living.
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Location
Property Details
Parking
- Description: Garage
- Details: Circular Driveway, Garage Door Opener, Carport, Heated Garage, On Site, Attached, Garage, Driveway
- Garage Spaces: 8
- Spaces Total: 8
Bedroom Information
- # of Bedrooms: 7
Bathroom Information
- # of Baths (Full): 7
- # of Baths (Partial): 1
- # of Baths (Total): 8.0
Interior Features
- # of Rooms: 17
- # of Stories: 2
- Basement: Yes
- Basement Description: Sump Pump, Finished, Exterior Entry, Daylight, Full, Walk-Out Access
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Masonry
- Foundation: Concrete Perimeter
- Roof Material: Tile
HOA
- Has HOA: Yes
- HOA Fee: $1,400/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 0134106017
- Lot Size: 0 sqft
Property Information
- Property Type: Single Family Residence
- Style: Mediterranean
- Year Built: 2003
Tax Information
- Annual Tax: $39,093
Utilities
- Water & Sewer: Well
- Heating: Natural Gas, Radiant Floor
- Cooling: Ceiling Fan(s), Central Air
Location
- County: Cook
Listing Details
Investment Summary
- Monthly Cash Flow
- -$14,988
- Cap Rate
- 0.8%
- Cash-on-Cash Return
- -23.7%
- Debt Coverage Ratio
- 0.13
- Internal Rate of Return (5 years)
- -18.9%
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:
| $3,295,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$2,636,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $659,000 |
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:
| $98,850 |
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:
| $757,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 17,000 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $194 |
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:
| $0.48 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $2,636,000 |
|---|---|
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:
| $17,202 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,258 |
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:
| $567 |
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:
| $21,027 |
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:
| $8,100 | $97,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$486 | -$5,832 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $7,614 | $91,368 |
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. | 40% | -$3,258 | -$39,093 |
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% | -$567 | -$6,804 |
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% | -$648 | -$7,776 |
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% | -$405 | -$4,860 |
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% | -$405 | -$4,860 |
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. | 1% | -$117 | -$1,404 |
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 | 67% | -$5,400 | -$64,797 |
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:
| $2,214 | $26,568 |
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. | -$17,202 | -$206,424 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $14,988 | $179,856 |