$998,000
Investment Summary
- Monthly Cash Flow
- -$1,197
- Cap Rate
- 4.2%
- Cash-on-Cash Return
- -6.3%
- Debt Coverage Ratio
- 0.75
- Internal Rate of Return (5 years)
- -2.1%
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 2667 E Overlook Dr in Williams, Arizona—your gateway to luxury and adventure. This stunning property, located in the exclusive gated community of Cedar Mountain Heights, offers over 2,600 square feet of luxury country living on 6 acres of high desert chaparral. It's the perfect retreat for families looking for a vacation home or for an investor seeking a lucrative VRBO opportunity after waiting period is satisfied. Situated just 50 miles south of the Grand Canyon, 15 miles from Route 66 and Bearizona, 42 miles to Flagstaff, and 70 miles to Sedona, this property serves as an ideal base for exploring Northern Arizona's most iconic destinations. The area is famous for its exceptional stargazing—imagine the entire Milky Way during new moons— and offers endless outdoor activities, including camping, off-roading, and exploring ancient native ruins. The home itself is a masterpiece of design and comfort, featuring hand-scraped solid hardwood floors, vaulted 16-foot ceilings, and a harmonious blend of modern amenities with reclaimed rustic accents. The fully equipped entertainment kitchen, complete with stainless steel appliances, granite countertops, and plenty of counter space, is perfect for hosting large gatherings. There are four spacious bedrooms, including a 300-square-foot master suite that boasts a cozy wood-burning fireplace, a luxurious spa tub, and direct access to the expansive wrap-around deck with breathtaking views of the western horizon. A 500-square-foot private studio suite above the garage comes with its own kitchenette, offering additional privacy and convenience. The living room, master bedroom, and second bedroom all open onto the deck and the stunning views of the vast landscapes stretching to the horizon. Outside, you'll find incredible spaces for entertaining and relaxation, including a large circular flagstone patio with a generous fire pit, perfect for gatherings and stargazing. The property is adorned with beautiful juniper trees and offers stunning views of wind farms, desert landscapes, and the Coconino National Forest, which is just a short walk away and features numerous trails to explore. Cedar Mountain Heights, an exclusive gated community with under 30 parcels, provides a serene, rural lifestyle at an elevation of 6,500+ feet. Residents enjoy clean air, moderate summers, crisp white winters, and the chance to observe a diverse range of wildlife, including elk, deer, mountain lions, and hummingbirds. The HOA ensures that the road is maintained year-round, including snow removal during the winter months, making the property accessible throughout the year. Currently operating as a successful VRBO, this property presents a fantastic investment opportunity with a proven rental history. Potential buyers interested in continuing the short-term rental model can inquire for more details on rental regulations and income potential. Additionally, the property offers room for customization with an unfinished basement that has been pre-designed for a movie theater space, ready for your personal touch. The sturdy construction, featuring 2x6 walls, also provides ample storage space and possibilities for future expansion. Utilities for the home include hauled water, propane for heating, electric service provided by Arizona Public Service, and a conventional septic system. The HOA takes care of road maintenance, ensuring easy access year-round, including during snowy winters. 2667 E Overlook Dr is more than just a house it's a lifestyle. Whether you're seeking a peaceful family getaway, an adventure-filled base for exploring Northern Arizona, or a profitable investment property, this home offers it all. Don't miss the opportunity to own this exceptional property in the heart of the great high desert of Northern Arizona.
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Location
Property Details
Parking
- Description: Open, Covered, Garage
- Garage Spaces: 2
- Spaces Total: 4
Bedroom Information
- # of Bedrooms: 3
Bathroom Information
- # of Baths (Total): 3.0
Interior Features
- # of Stories: 2
- Fireplace: Yes
Exterior Features
- Roof Material: Composition, Other
HOA
- Has HOA: Yes
- Association: POA Cedar Mountain H
- HOA Fee: $500/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 20204134B
- Lot Size: 253515 sqft
Property Information
- Property Type: Single Family Residence
- Style: Other
- Year Built: 2007
Tax Information
- Annual Tax: $2,721
Utilities
- Heating: Other
- Cooling: Other
Location
- County: Coconino
Listing Details
Investment Summary
- Monthly Cash Flow
- -$1,197
- Cap Rate
- 4.2%
- Cash-on-Cash Return
- -6.3%
- Debt Coverage Ratio
- 0.75
- Internal Rate of Return (5 years)
- -2.1%
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:
| $998,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$798,400 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $199,600 |
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:
| $29,940 |
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:
| $229,540 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 2,431 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $411 |
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:
| $2.26 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $798,400 |
|---|---|
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:
| $4,723 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $227 |
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:
| $385 |
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:
| $5,335 |
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:
| $5,500 | $66,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$330 | -$3,960 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $5,170 | $62,040 |
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. | 4% | -$227 | -$2,721 |
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% | -$385 | -$4,620 |
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% | -$440 | -$5,280 |
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% | -$275 | -$3,300 |
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% | -$275 | -$3,300 |
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% | -$42 | -$504 |
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 | 30% | -$1,644 | -$19,725 |
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:
| $3,526 | $42,312 |
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. | -$4,723 | -$56,676 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $1,197 | $14,364 |