$4,500,000
Investment Summary
- Monthly Cash Flow
- -$17,440
- Cap Rate
- 1.6%
- Cash-on-Cash Return
- -20.2%
- Debt Coverage Ratio
- 0.26
- Internal Rate of Return (5 years)
- -15.5%
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
Fall in love with this exquisite home, beautifully situated on 2 acres of prime real estate with mountain, lush desert, and sunset views. The resort style estate features an infinity edge heated pool with waterfall-grotto, water slide, a bubbling spa, and a PEP Solar Pool Heating System keeping the pool at a comfortable 72 degrees. The expansive outdoor areas include a pickleball and sports court, a large putting green with an elevated chipping box and sand trap, a rock climbing wall, and an in-ground trampoline. The expansive covered patio and dining area provides a cozy gas fireplace that seats up to 12 guests comfortably and is equipped with an outdoor kitchen, gas BBQ grill, modern pizza oven, 4 infrared ceiling heaters, premium outdoor surround sound and a powerful misting system to cool off during those warm summer evenings. This private, gated residence in the master plan community of Saguaro Estates has been tastefully updated and provides a grand entry courtyard, soothing water feature, impressive living and dining areas that feature soaring ceilings, dramatic wood beams, Cantera fireplace, hardwood flooring, and a temperature-controlled wine room with limestone accents and wine barrel floors. The gourmet kitchen is an entertainer's delight with high-end appliances, granite countertops, walnut natural-wood cabinetry, a spacious breakfast nook, opening to the elegant family room with coffered wood ceiling, cozy fireplace, and a wet bar complete with a 150-bottle Sub-Zero wine fridge, refrigerator drawers, and ice maker. The large pantry supports all your family's needs with ample storage and a second full-size Viking refrigerator/freezer set. The owner's suite is a true retreat, featuring an office, an in-home workout space, and a relaxation area with a kitchenette. A two-way fireplace separates the spacious bedroom, which offers French doors that open onto the patio. The spa-like bathroom includes a soaker tub, a multi shower head walk-in, dual vanities, his & her closets, and separate commodes. The guest wing includes a media/lounge area and kitchenette; along with four guest bedrooms and bathrooms. The guest casita, with its own entrance, features a full kitchen, living room, dining area, patio, bedroom, and bathroom. A well-appointed powder room and a large laundry room with two sets of LG ThinQ machines complete the sprawling floor plan. This home is conveniently located just a short drive from the popular restaurant and entertainment districts of Market Street at DC Ranch, the town of Cave Creek, The Summit, Kierland Commons, and Scottsdale Quarter; as well as Westworld (host of the annual Barrett-Jackson Car Auction and Arabian Horse Show), TPC Golf Course (host of the WM Phoenix Open), Salt River Fields (host of Spring Training), and the world-renowned Mayo Clinic. With convenient access to the Loop 101 and 51 freeways, traveling around the greater Scottsdale and Phoenix areas is a breeze.
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Location
Property Details
Parking
- Description: Electric Door Opener, Separate Strge Area
- Details: Garage Door Opener, Circular Driveway
- Garage Spaces: 4
- Spaces Total: 4
Bedroom Information
- # of Bedrooms: 6
Bathroom Information
- # of Baths (Total): 8.0
Interior Features
- # of Rooms: 3
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Other
- Pool: Yes
HOA
- Has HOA: Yes
- Association: Saguaro Estates
- HOA Fee: $189/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 21210289
- Lot Size: 84899 sqft
Property Information
- Property Type: Single Family Residence
- Style: Contemporary, Santa Barbara/Tuscan
- Year Built: 2007
Tax Information
- Annual Tax: $9,553
Utilities
- Water & Sewer: Public
- Heating: Natural Gas
- Cooling: Central Air
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$17,440
- Cap Rate
- 1.6%
- Cash-on-Cash Return
- -20.2%
- Debt Coverage Ratio
- 0.26
- Internal Rate of Return (5 years)
- -15.5%
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:
| $4,500,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$3,600,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $900,000 |
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:
| $135,000 |
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:
| $1,035,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 7,740 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $581 |
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:
| $1.32 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $3,600,000 |
|---|---|
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:
| $23,493 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $796 |
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:
| $714 |
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:
| $25,003 |
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:
| $10,200 | $122,400 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$612 | -$7,344 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $9,588 | $115,056 |
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% | -$796 | -$9,553 |
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% | -$714 | -$8,568 |
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% | -$816 | -$9,792 |
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% | -$510 | -$6,120 |
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% | -$510 | -$6,120 |
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. | 2% | -$189 | -$2,268 |
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 | 35% | -$3,535 | -$42,421 |
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:
| $6,053 | $72,636 |
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. | -$23,493 | -$281,916 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $17,440 | $209,280 |