$999,000
Investment Summary
- Monthly Cash Flow
- -$2,940
- Cap Rate
- 2.1%
- Cash-on-Cash Return
- -15.4%
- Debt Coverage Ratio
- 0.38
- Internal Rate of Return (5 years)
- -10.9%
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
**Incredible Investment Opportunity: 4 Homes for the Price of One!** What our sellers loves about this property '' Main house has 3 bedrooms and 2 bathrooms with a master that is upstairs and has two closets, fully remodeled 2nd bathroom, 2 living spaces and a large, covered patio with built in fire pit. The second house features 3 bedrooms, 2 baths, living room and open kitchen. In addition, there is a one-bedroom studio apartment and unfinished 4th house that can be finished into a 2 bedroom 1 bath with open kitchen. And the finished homes bring in rental income'' Discover an exceptional chance to own a unique property featuring three distinct residences and endless possibilities! Nestled on a generous .866 of an acre irrigated lot, this incredible compound includes a main house, a charming guest house, and a versatile studio apartment all with separate entrances. Whether you're looking for a family compound, rental income, or a creative development project, this property has it all! **Main House: A Farmhouse Dream** Step into the heart of this enchanting three-bedroom, two-bath farmhouse. You'll love the inviting ambiance created by new tile flooring and warm wood accents in the living room. The well-appointed kitchen boasts a refrigerator, range, and dishwasher, along with both eat-in and formal dining options. With two spacious living areas and a bonus room, this home is perfect for entertaining. The magnificent 18x18 primary bedroom upstairs features three walk-in closets and French doors that open to a private balcony, providing a beautiful retreat. Enjoy the recently remodeled downstairs bath with stylish tile backsplash and a cozy wood fireplace with a charming brick finish to elevate your living experience. **Guest House: Modern Comforts** Adjacent to the main house, the three-bedroom, two-bath guest house offers a harmonious blend of comfort and style. With new duct work, remodeled kitchen, and newer tile throughout, this space is ready for immediate enjoyment. The kitchen features a gas range and generous areas for both eat-in and formal dining. The hall bath has been recently remodeled, and the primary bathroom highlights a stunning shower with chic backsplash. Secondary bedrooms are spacious and ideal for family or guests. **Studio Apartment: Perfectly Private** Above the guest house, you'll find a delightful one-bedroom, one-bath studio apartment with its own entrance. This cozy retreat features an eat-in kitchen with a gas range, tile flooring throughout, and a small living room, making it perfect for guests or as additional rental income. **Endless Potential** In addition to the three residences, there's a partially finished separate building that can be creatively transformed into a two-bedroom, two-bath homelet your imagination run wild! All utilities are separately metered, making management a breeze, while the property includes three separate mailboxes, one water meter, and two gas meters. **Outdoor Space & Parking** With an RV gate and ample space for extra parking, you have everything you need for convenience and accessibility. The irrigated lot offers plenty of room to add more units or create a stunning outdoor oasis. Don't miss this rare opportunity to live in one of your homes while generating income from the others!
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Location
Property Details
Parking
- Description: Open, Covered, Carport, Garage
- Details: RV Access/Parking, Paved, Carport
- Garage Spaces: 0
- Spaces Total: 10
Bedroom Information
- # of Bedrooms: 6
Bathroom Information
- # of Baths (Total): 0.0
Interior Features
- # of Rooms: 7
- # of Stories: 2
Exterior Features
- Exterior Walls Materials: Wood
- Roof Material: Composition
Land Information
- Land Use: Residential Income
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 14615006C
- Lot Size: 0 sqft
Property Information
- Property Type: Multi Family
- Year Built: 1934
Tax Information
- Annual Tax: $2,558
Utilities
- Water & Sewer: Public
- Heating: Heat Pump, Electric, Natural Gas
- Cooling: Central Air, Electric, Heat Pump
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$2,940
- Cap Rate
- 2.1%
- Cash-on-Cash Return
- -15.4%
- Debt Coverage Ratio
- 0.38
- Internal Rate of Return (5 years)
- -10.9%
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:
| $999,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$799,200 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $199,800 |
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:
| $29,970 |
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:
| $229,770 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 0 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| n/a |
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:
| n/a |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $799,200 |
|---|---|
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:
| $4,728 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $213 |
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:
| $203 |
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:
| $5,144 |
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:
| $2,900 | $34,800 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$174 | -$2,088 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $2,726 | $32,712 |
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. | 7% | -$213 | -$2,558 |
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% | -$203 | -$2,436 |
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% | -$232 | -$2,784 |
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% | -$145 | -$1,740 |
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% | -$145 | -$1,740 |
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 | 32% | -$938 | -$11,258 |
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:
| $1,788 | $21,456 |
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. | -$4,728 | -$56,736 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $2,940 | $35,280 |