$8,500,000
Investment Summary
- Monthly Cash Flow
- -$42,441
- Cap Rate
- 0.3%
- Cash-on-Cash Return
- -26.1%
- Debt Coverage Ratio
- 0.05
- Internal Rate of Return (5 years)
- -21.1%
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
Rare opportunity to acquire completely remodeled waterfront residence (Finished in 2023) on Sarasota’s most prestigious barrier island of Longboat Key, in the coveted Harbors enclave of Bay Isles. Orchestrating exceptional style, comfort, and barefoot elegance, this five-bedroom home stirs the senses. Completely redesigned by renowned architect Clifford Scholz, construction was completed in October 2023 after two years. This home is filled with top of the line finishes that merge with a thoughtful floorplan and an endless list of custom touches. Set on a dreamy corner lot with basin frontage that leads straight into Sarasota Bay, the outdoor experience was perfected by award-winning landscape architect Michael A. Gilkey. Upon entering the foyer, your eyes are immediately drawn to the oil rubbed, hand scrapped wood floors and extensive woodwork throughout the entire home. The formal living room, anchored by a custom wormy butternut bar, coffered ceilings with hidden air vents and speakers and a wealth of french doors, which leads directly to the outdoor living room, protected by retractable screens and shutters. Enter the chef’s kitchen complete with Viking and Subzero appliances, Italian soapstone countertops, custom Campbell cabinetry, Miele built-in coffee station and ice maker in the beverage center, and two concealed Cove dishwashers. Rounding out the kitchen is the butler’s pantry with additional refrigerator, laundry, and custom cabinetry for storage of all your entertaining essentials. Enjoy morning coffee in the connected family room with gas fireplace and built-in bookshelves and cabinets. Conveniently located steps away is the large outdoor kitchen with grill, power burner, smoker, and custom dining table for twelve. Large media room contains custom leather theater seating and wet bar. Under the staircase is the climate controlled 506-bottle wine cellar with old-world marble floor. The breathtaking dining room includes custom built furniture imported from Italy, Juliet balcony, and wet bar. Two bedrooms finish out the first floor, one complete with custom built-in office. The pool bath has floating wood counters made from antique wooden boat slabs imported from France, mother of pearl shower wall tiles, and Waterstone fixtures. The primary suite is serene and spacious and opens to its own private terrace. Winding down every day becomes a cherished ritual in the primary bath which boasts large copper tub and Waterstone fixtures throughout, imported crema tile in zero clearance wet room that contains rain head, two handhelds, marble bench, and electronic privacy glass. The large ensuite closet is fully custom with mahogany wood slab island. A second-level primary bedroom offers an ensuite bath and its own private terrace. There is an efficiency bedroom, complete with ensuite bath with tub, and kitchenette with full-size fridge. The back yard pampers with a resort-like experience with pool with sun shelf, spa, custom firepit, outdoor shower and dog wash, and pet turf. The HOA maintains the seawall. The boat lift, jetski lift, and corresponding pilings are new, along with new Azek PVC decking material. Other notable items: 36,000 KW Kohler generator which powers the entire residence, Lutron smart home system, laundry room on each level of the home, three-car garage, and hidden retractable electronic Lutron shades throughout.
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Location
Property Details
Parking
- Description: Circular Driveway, Garage Door Opener, Garage Faces Rear, Garage Faces Side, Guest
- Details: Circular Driveway, Garage Door Opener, Garage Faces Rear, Garage Faces Side, Guest, Attached
- Garage Spaces: 3
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Full): 5
- # of Baths (Partial): 1
- # of Baths (Total): 6.0
Interior Features
- # of Rooms: 11
- # of Stories: 3
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Foundation: Slab
- Roof Type: Hip
- Roof Material: Tile
- Pool: Yes
HOA
- Has HOA: Yes
- Association: Manager
- HOA Fee: $2,200/annually
- Additional Association: Bay Isles
- Additional HOA Fee: $3,753/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 0009030002
- Lot Size: 24201 sqft
Property Information
- Property Type: Single Family Residence
- Year Built: 1989
Tax Information
- Annual Tax: $42,054
Utilities
- Water & Sewer: Public
- Heating: Central, Zoned
- Cooling: Central Air, Zoned
Location
- County: Sarasota
Listing Details
Investment Summary
- Monthly Cash Flow
- -$42,441
- Cap Rate
- 0.3%
- Cash-on-Cash Return
- -26.1%
- Debt Coverage Ratio
- 0.05
- Internal Rate of Return (5 years)
- -21.1%
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:
| $8,500,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$6,800,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $1,700,000 |
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:
| $255,000 |
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:
| $1,955,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 6,125 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $1,388 |
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:
| $1.44 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $6,800,000 |
|---|---|
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:
| 6.840% |
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:
| $44,512 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $3,505 |
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:
| $616 |
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:
| $48,633 |
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:
| $8,800 | $105,600 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$528 | -$6,336 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $8,272 | $99,264 |
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. | 40% | -$3,505 | -$42,054 |
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% | -$616 | -$7,392 |
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% | -$704 | -$8,448 |
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% | -$440 | -$5,280 |
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% | -$440 | -$5,280 |
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. | 6% | -$496 | -$5,952 |
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 | 70% | -$6,201 | -$74,406 |
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:
| $2,071 | $24,852 |
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. | -$44,512 | -$534,144 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $42,441 | $509,292 |