$845,000
Investment Summary
- Monthly Cash Flow
- -$1,693
- Cap Rate
- 3.3%
- Cash-on-Cash Return
- -10.5%
- Debt Coverage Ratio
- 0.58
- Internal Rate of Return (5 years)
- -6.1%
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
Beautiful Custom Home on 2.272 acres in the Rio Verde Foothills. Enjoy the beauty and solitude of your Sonoran Desert Estate, only 20 minutes from nearby Scottsdale & Fountain Hills. With a secured EPCOR water supply, this home is within easy hiking or biking distance to the Tonto National Forest, the Verde River, and McDowell Mountain Park. Outside, you can watch the sunrise over the Four Peaks and enjoy the expansive mountain views from the covered wraparound east patio. Later in the day, view gorgeous unimpeded Arizona sunsets from the fully landscaped west patio. At night, you can stargaze under the endless desert skies, unpolluted by the urban lights of Phoenix. Check out listing #6854762 for the opportunity to buy the adjacent 2.272 acres to make your lot a super private 4.5 acres! There is ample room to add outbuildings, casitas, swimming pools, additional equestrian facilities, landscape features, and the like. With no local HOA, your freedom to put your own personal touches and additions on the house and land is only as limited as your imagination! The back quarter of the property is already equestrian-equipped, with a 4 stall mare motel in a large corral that easily could be converted into an arena. Space is also available for RV parking and equipment storage. That's in the event that the spacious three-car attached garage with its custom cabinetry, extra high doors/ceilings, high tech openers and epoxy flooring isn't enough to store your vehicles and other toys. Inside, the home is filled with natural light. Its open plan and sliding glass doors allow you to combine indoor and outdoor activities with ease. Very high ceilings soar above the large great room with its tall windows, fireplace, dining area, and entertainment center. Behind the large breakfast bar is the fabulous kitchen, which has granite countertops, stainless steel appliances, a generous pantry and the perfect breakfast space for you to watch the wildlife over a cup of coffee. The master suite starts with a spacious bedroom which has its own entry door from the outside. From there, you encounter the dramatic master bathroom with walk-in shower, twin sinks and large bathtub. The walk-in closet is tremendous, with a full complement of custom cabinetry and enough extra space to house a home office or an array of workout equipment. Two additional bedrooms are also spacious and airy, with each closet boasting customized shelving for maximal storage. The laundry room also includes a full-sized washer/dryer and an extra full-sized refrigerator. Don't miss the rare opportunity to make this home the center of your own estate in the beautiful Sonoran desert!
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Location
Property Details
Parking
- Description: Electric Door Opener, Extnded Lngth Garage, Over Height Garage, Separate Strge Area, RV Parking
- Details: RV Access/Parking, Garage Door Opener, Circular Driveway
- Garage Spaces: 3
- Spaces Total: 3
Bedroom Information
- # of Bedrooms: 3
Bathroom Information
- # of Baths (Full): 2
- # of Baths (Total): 2.0
Interior Features
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Built-Up
Land Information
- Land Use: Residential
- Land Use Subtype: Rural/Agricultural
Lot Information
- Parcel ID: 21938072
- Lot Size: 98968 sqft
Property Information
- Property Type: Single Family Residence
- Style: Ranch, Territorial/Santa Fe
- Year Built: 2006
Tax Information
- Annual Tax: $2,138
Utilities
- Heating: Electric
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$1,693
- Cap Rate
- 3.3%
- Cash-on-Cash Return
- -10.5%
- Debt Coverage Ratio
- 0.58
- Internal Rate of Return (5 years)
- -6.1%
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:
| $845,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$676,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $169,000 |
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:
| $25,350 |
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:
| $194,350 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 2,430 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $348 |
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:
| $1.48 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $676,000 |
|---|---|
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:
| $3,999 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $178 |
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:
| $252 |
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:
| $4,429 |
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:
| $3,600 | $43,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$216 | -$2,592 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,384 | $40,608 |
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. | 5% | -$178 | -$2,138 |
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% | -$252 | -$3,024 |
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% | -$288 | -$3,456 |
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% | -$180 | -$2,160 |
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% | -$180 | -$2,160 |
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 | 30% | -$1,078 | -$12,938 |
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:
| $2,306 | $27,672 |
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. | -$3,999 | -$47,988 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | -$1,693 | -$20,316 |