$1,050,000
Investment Summary
- Monthly Cash Flow
- -$2,974
- Cap Rate
- 2.7%
- Cash-on-Cash Return
- -14.8%
- Debt Coverage Ratio
- 0.45
- Internal Rate of Return (5 years)
- -10.3%
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
WOW! A Waterfront Dream in Piedmont Lake. Behind the gates of Piedmont Lake, on 2.48 acres of beautifully landscaped ground, this extraordinary waterfront estate awaits. Here, life feels like a retreat, where mornings begin with coffee overlooking the water, afternoons are spent by the pool or on the tennis courts, and evenings end around the firepit or gathered on the Summer Porch. With 4 bedrooms, 5.5 bathrooms, and an attached three-car garage, this home is as impressive in detail as it is in lifestyle. A circular driveway leads to a grand entrance, where a solid wooden door opens into a foyer unlike any other. A triple tray ceiling with specialty lighting makes a striking first impression. To one side, the dining room welcomes dinner parties with soaring windows, brick floors, and space for even the largest table. To the other, a formal living room offers its own charm with a unique fireplace and equally dramatic windows. At the heart of the home is the great room. where a stack-stoned fireplace anchors the space, built-in cabinetry frames the scene, and walls of windows draw your gaze to the sparkling lake just beyond. French doors open to the outdoors, blending indoor comfort with natural beauty. The gourmet kitchen is a chef's dream, fully reconstructed in 2022. Every detail was considered-from the Wolf six-burner stovetop and KitchenAid double ovens to the dual dishwashers, Subzero refrigerator and freezer, wine cooler, beverage cooler and ice maker. Gorgeous custom cabinetry with built-in features, multiple prep sinks, a butler's pantry, and two walk-in pantries keep everything organized, while three islands give plenty of space for cooking, baking and entertaining. Natural light pours in through windows overlooking the lake, while doors connect to both a sunny patio and screened Summer Porch, where an outdoor kitchen makes entertaining effortless. Convenience is woven throughout the home: a power room just off the kitchen, a double mudroom with multiple entry points, a spacious laundry room, and even a bonus room with its own full bath, kitchenette, and beverage cooler-perfect for guests or hobbies. An office/library with walls of built-ins and French doors leading to the enclosed porch provides the perfect work-from-home retreat. The owner's suite is a sanctuary, complete with two oversized walk-in closets, a wall of windows with lake views, and French doors leading to the porch. The spa-inspired bath features a jetted tub, a custom stepless steam shower, double vanities and thoughtful detailed lighting. Guest suites are privately situated, with three bedrooms and two baths-including a Jack-and-Jill-as well as a private guest entrance with its own bath and patio. Outdoors, the lifestyle continues. The covered Summer Porch offers a full outdoor kitchen with built-in grills, cooktop, sink, and beverage cooler, along with plenty of room for dining and lounging. Step down to the covered patio or lakeside sitting area, complete with a firepit, perfect for chilly nights or making s'mores under the stars. The boathouse provides storage and easy water access, while the new seawall, dock supports, and planking ensure years of worry-free enjoyment. Additional highlights include Brazilian cherry flooring, Lite Touch lighting, 10-12-foot ceilings, decorative molding, fresh interior paint, new carpet, upgraded water heaters, new HVAC and gas logs, plus an irrigation and alarm system. The garage offers three bays, including one with front and rear entry, and a heated/cooled workshop with a full bath, separate entrance and a back porch. Every detail of this home has been carefully curated to blend elegance, function, and the beauty of lakefront living. Whether hosting large gatherings, retreating in a quiet comfort, or spending days on the water, this property offers it all, right here in the coveted, gated, swim, tennis, and lake community of Piedmont Lake!!
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Location
Property Details
Parking
- Description: Attached, Boat, Parking Pad, 3-Garage
- Details: Attached, Garage, Garage Door Opener, Guest, Kitchen Level, Off Street, Parking Pad, Boat
- Garage Spaces: 3
- Spaces Total: 3
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Full): 5
- # of Baths (Partial): 1
- # of Baths (Total): 5.5
Interior Features
- # of Rooms: 9
- # of Stories: 1
- Attic: Yes
- Basement Description: None
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Masonry
- Foundation: Slab
- Roof Type: Hip
- Roof Material: Composition
- Pool Community: Yes
HOA
- Has HOA: Yes
- HOA Fee: $2,638/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 03608101
- Lot Size: 0 sqft
Property Information
- Property Type: Single Family Residence
- Style: Brick 4 Side, Traditional
- Year Built: 2001
Tax Information
- Annual Tax: $9,902
Utilities
- Water & Sewer: Public
- Heating: Electric, Heat Pump
- Cooling: Ceiling Fan(s), Central Air, Electric
Location
- County: Harris
Listing Details
Investment Summary
- Monthly Cash Flow
- -$2,974
- Cap Rate
- 2.7%
- Cash-on-Cash Return
- -14.8%
- Debt Coverage Ratio
- 0.45
- Internal Rate of Return (5 years)
- -10.3%
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:
| $1,050,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$840,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $210,000 |
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:
| $31,500 |
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:
| $241,500 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,466 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $192 |
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:
| $0.91 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $840,000 |
|---|---|
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:
| $5,379 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $825 |
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:
| $350 |
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:
| $6,554 |
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:
| $5,000 | $60,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$300 | -$3,600 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $4,700 | $56,400 |
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. | 17% | -$825 | -$9,902 |
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% | -$350 | -$4,200 |
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% | -$400 | -$4,800 |
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% | -$250 | -$3,000 |
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% | -$250 | -$3,000 |
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. | 4% | -$220 | -$2,640 |
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 | 46% | -$2,295 | -$27,542 |
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:
| $2,405 | $28,860 |
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. | -$5,379 | -$64,548 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $2,974 | $35,688 |