$825,000
Investment Summary
- Monthly Cash Flow
- -$1,948
- Cap Rate
- 2.8%
- Cash-on-Cash Return
- -12.3%
- Debt Coverage Ratio
- 0.50
- Internal Rate of Return (5 years)
- -7.9%
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
Stunning, custom built home with over 3000 SQ FT in main house, 800 SQ FT interior courtyard, 1225 SQ FT in GUEST HOUSE & 825 SQ Ft 2 car garage all situated on 4 .1 acres with glorious mountain views . This exquisite home was designed with meticulous attention paid to every detail by one of Bisbee's most beloved artists and local gallery owner. The home was built by the eminent local contractor, Sam Pressley, it's truly elegant living in the high desert! The main house boasts over 3000 Sq Ft that flows in from the wraparound patio. At the center of this home is an inviting open air courtyard, where you can enjoy a luxurious day in the sun, soaking in the hottub, or enjoying a dark star filled sky! As you enter you are greeted by soaring 14 FT ceilings, beautiful travertine flooring gas fireplace, and open floorplan. The home was designed to showcase an art collection, bring yours or embark on collecting at one of Bisbee's many art galleries. The gourmet kitchen with huge island with cabinets all around maximizing storage, granite countertops, hammered copper extra large sink, refrigerator flanked in custom cabinetry. Attention to detail with a plethora of cabinets, deep drawers, and built in pantries with sliding shelves housing hidden microwave, breakfast station, coffee and toaster, keeping cords out of sight, simply roll back in. Voila! Dining area & abundant space for seating at the island for guests & family to gather in the heart of this home. The primary suite with custom built bed, night table cabinets with power to charge phones, keeping all your gadgets out of sight. The bed is extra long, so your decorative pillows stay in place, night or day. This is genius, suite offers two baths! One complete with the laundry room. The crowning jewel is the dressing room! Almost 600 sq ft dedicated to your selfcare, elevated soaking tub, walk in shower with seating, water closet, & glamorous closet space. You'll think you're in a 5 Star hotel. The split floorplan offers two other bedrooms, and bath. The guest house is built with the same dedication to quality as the main house. 1225 Sq Ft with high ceilings, full wraparound patio, 10 1/2 ft doors from France hide the storage area, gas fireplace, sleek kitchette, windows galore, with light so plentiful, this currently serves as the artist's studio. Bathroom with clawfoot soaking tub & shower, laundry space for stackables. Superior construction, RASTRA block provides sound, solid, flexural strength & energy efficiency, reducing use by as much as 50%! Metal roofs are esthetically pleasing, & while also providing a lifetime of peace of mind. Beautiful casement, dual pane windows with fabulous views to enjoy all the flora & fauna Cochise County has to offer. Radiant heat through the floors, is efficient & provides a comforting warmth. Energy efficient mini splits provide additional heat, and cooler air in the summer. The property includes a two car garage with lots of storage space. Not enough room, the property can handle parking of all your toys and guests! You'll love living here! Bisbee & Cochise County are world renowned for 4 glorious, mild seasons, enjoy an active lifestyle with biking, & hiking trails, to challenge even the most avid enthusiast, or give the 1000 Steps Stairclimb & Iceman Challenge a try, an event that happens every October! People flock from around the world for the birdwatching alone! Bisbee provides a laid back lifestyle, strong sense of community, nearly weekly art festivals, infamous music festivals, nationally recognized restaurants, weekly Farmer's market. Partake in the lively Bisbee scene, then come home to your quiet slice of paradise, with endless sunsets galore. Please read additional documents for details too numerous to mention.
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Location
Property Details
Parking
- Description: Attch'd Gar Cabinets
- Details: Circular Driveway
- Garage Spaces: 2
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 3
Bathroom Information
- # of Baths (Total): 3.0
Interior Features
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Concrete
- Roof Material: Metal
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 10236006J
- Lot Size: 182722 sqft
Property Information
- Property Type: Single Family Residence
- Style: Territorial/Santa Fe
- Year Built: 2009
Tax Information
- Annual Tax: $3,022
Utilities
- Heating: Floor Furnace, Wall Furnace, Propane
- Cooling: Ceiling Fan(s)
Location
- County: Cochise
Listing Details
Investment Summary
- Monthly Cash Flow
- -$1,948
- Cap Rate
- 2.8%
- Cash-on-Cash Return
- -12.3%
- Debt Coverage Ratio
- 0.50
- Internal Rate of Return (5 years)
- -7.9%
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:
| $825,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$660,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $165,000 |
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:
| $24,750 |
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:
| $189,750 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 3,038 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $272 |
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:
| $1.05 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $660,000 |
|---|---|
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:
| $3,904 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $252 |
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:
| $224 |
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:
| $4,380 |
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:
| $3,200 | $38,400 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$192 | -$2,304 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,008 | $36,096 |
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. | 8% | -$252 | -$3,022 |
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% | -$224 | -$2,688 |
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% | -$256 | -$3,072 |
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% | -$160 | -$1,920 |
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% | -$160 | -$1,920 |
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 | 33% | -$1,052 | -$12,622 |
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:
| $1,956 | $23,472 |
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. | -$3,904 | -$46,848 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $1,948 | $23,376 |