$8,750,000
Investment Summary
- Monthly Cash Flow
- -$48,759
- Cap Rate
- -1.0%
- Cash-on-Cash Return
- -29.1%
- Debt Coverage Ratio
- -0.18
- Internal Rate of Return (5 years)
- -24.0%
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
This extraordinary lakefront residence is the ultimate blend of luxury, comfort, breathtaking views and private beach. This sophisticated contemporary home boasts 9,749 square feet above-grade and an additional 4,434 square feet of finished lower-level space, all of which has been thoughtfully redesigned during a comprehensive renovation from 2006 to 2008. Every aspect of this dream property was touched, including interior design, windows, plumbing and electrical systems with all LED lighting (2024), complete home automation system (currently being updated), plus meticulous and extensive restoration of the beach, bluff and retaining wall system, to ensure years of worry-free enjoyment of the property. The crown jewel of this home is its 214 feet of pristine, sandy beach, accessible by the metal stairs (2020) or tram (2019), with its grandfathered-in and renovated deck and boathouse (2011), all protected by stone emplacements and breakwalls, precisely designed and installed during the significant rehab of the beach and bluff (2009, 2015). Step inside the spacious, 3 story high foyer to sweeping views of Lake Michigan through walls of floor to ceiling windows with UV protection gracing the large living and dining rooms, which share a show-stopper two-sided stone fireplace. The heart of the home is its gourmet kitchen boasting plentiful cabinet space, walk-in pantry, high-end appliances including 2 Bosch dishwashers, NEW Wolf induction cooktop, double ovens and warming drawers, and a huge island with granite waterfall countertops for prep-work, dining and serving. The kitchen also encompasses a lovely breakfast area overlooking the lake plus space to relax or watch TV in the welcoming family room. Walk out to the serene backyard with built-in grill and sink. Other main floor highlights include: three en-suite bedrooms (including original primary suite), private office with built-ins, a dedicated dog spa room with laundry and access to the enclosed dog run, front and back staircases to second and lower levels, 2 powder rooms, laundry room, extensive closet and storage space AND an elevator with child space guards servicing all four levels. The second-floor primary suite occupies its own private wing, providing a peaceful retreat with stunning lake views, beautifully appointed, luxurious bathroom, separate workout room, and expansive closet area complete with island and an abundance of closed cabinetry for clutterless storage. The third floor, 2nd office has a fireplace and magnificent, endless views of the lake - you'll never want to leave! Head down to the walkout lower-level to find an entertainer's dream, featuring flexible spaces for a variety of purposes - current uses include home theater, billiard room and yoga/play areas. Other basement highlights include: full second kitchen; spa with steam room, shower and jetted tub; plentiful storage; second laundry room; lovely, serene sunroom which leads to the expansive backyard with flat table land and, of course, lake views. Heated 3 car garage with epoxy floor and two 220 volt outlets for EVs. Keyth security system; copper roof with solar panels; fire suppression system; irrigation system. No detail was overlooked and no expense spared in crafting this stunning home where elevated design meets effortless beauty.There is nothing fussy about 55 South Deere Park; it awes with its quiet sophistication. This is a residence in which to surround yourself in luxury while basking in the most coveted views.
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Location
Property Details
Parking
- Description: Garage
- Details: Garage Door Opener, On Site, Attached, Garage, Driveway
- Garage Spaces: 3
- Spaces Total: 3
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Full): 6
- # of Baths (Partial): 3
- # of Baths (Total): 9.0
Interior Features
- # of Rooms: 15
- # of Stories: 2
- Basement: Yes
- Basement Description: Sump Pump, Finished, Full, Walk-Out Access
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Rock, Stone
- Roof Material: Metal
- Pool: Yes
HOA
- Has HOA: Yes
- HOA Fee: $150/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 1731302052
- Lot Size: 0 sqft
Property Information
- Property Type: Single Family Residence
- Style: Contemporary
- Year Built: 1978
Tax Information
- Annual Tax: $140,215
Utilities
- Heating: Natural Gas, Forced Air, Radiant Floor
- Cooling: Central Air, Zoned
Location
- County: Lake
Listing Details
Investment Summary
- Monthly Cash Flow
- -$48,759
- Cap Rate
- -1.0%
- Cash-on-Cash Return
- -29.1%
- Debt Coverage Ratio
- -0.18
- Internal Rate of Return (5 years)
- -24.0%
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:
| $8,750,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$7,000,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $1,750,000 |
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:
| $262,500 |
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:
| $2,012,500 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 9,749 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $898 |
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:
| $0.65 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $7,000,000 |
|---|---|
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:
| $41,408 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $11,685 |
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:
| $441 |
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:
| $53,534 |
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:
| $6,300 | $75,600 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$378 | -$4,536 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $5,922 | $71,064 |
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. | 185% | -$11,685 | -$140,216 |
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% | -$441 | -$5,292 |
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% | -$504 | -$6,048 |
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% | -$315 | -$3,780 |
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% | -$315 | -$3,780 |
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. | 0% | -$13 | -$156 |
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 | 211% | -$13,273 | -$159,272 |
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:
| -$7,351 | -$88,212 |
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. | -$41,408 | -$496,896 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | -$48,759 | -$585,108 |