$5,000,000
Investment Summary
- Monthly Cash Flow
- -$18,732
- Cap Rate
- 1.2%
- Cash-on-Cash Return
- -19.5%
- Debt Coverage Ratio
- 0.21
- Internal Rate of Return (5 years)
- -14.9%
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
Discover elevated desert living in this extraordinary estate perched atop Mummy Mountain, artfully designed and constructed by Salcito Custom Homes. Perfectly positioned on 1.5 acres in the prestigious guard-gated community of La Place du Sommet, this hillside residence offers commanding, unobstructed views of the McDowell Mountains, Four Peaks, Superstition Mountains, and the shimmering city lights below. The home is a seamless expression of craftsmanship and architectural elegance, where rich wood, copper, stone, and glass combine to create a warm, modern aesthetic that feels both refined and timeless. Every room in the home provides sweeping panoramic vistas or an intimate view of the rugged and raw beauty of the mountainside. Elegant living and entertaining spaces are found throughout the residence. The formal living room features a fireplace and wet bar, while the adjacent dining room offers floor to ceiling windows that frame the ever-changing canvas of the desert mountain landscape. A second living area offers access to a spacious balcony that's ideal for al fresco gatherings and opens to the gourmet kitchen which is outfitted with Viking and SubZero appliances and anchored with rich custom wood cabinetry accented with copper. The stunning mahogany library doubles as a sophisticated office, complete with a fireplace and a floor-to-ceiling stained glass pocket door and floor-to-ceiling windows to bring the outdoors in. A soundproof theater room is the ideal setting for immersive entertainment. The custom subterranean wine cellar with natural rock walls, barrel vaulted ceiling and a marble wet bar adds to the home's rich offering of amenities. This estate offers five bedrooms and five-and-a-half baths, with four bedrooms featuring ensuite baths - three of which open to private balconies. The primary suite is a serene retreat with its own sitting area, fireplace, private patio, and a luxurious bath featuring dual vanities, a walk-in shower, and a stand alone tub - all designed to soak in the surrounding views. Built thoughtfully into Mummy Mountain, the exterior spaces are no less remarkable. Multi-level terraces, a built-in BBQ, and an infinity-edge spool are set against dramatic desert rock formations, creating an awe-inspiring backdrop for everyday living or grand entertaining. The estate also features a temperature-controlled three-car garage with EV charging, ELEVATOR access to the main living spaces and five fireplaces. Located just minutes from the Ritz-Carlton Resort, upscale shopping, premier golf, and world-class dining, and within easy access of both public and private airports, this estate is more than a home - it's an exceptional lifestyle. Rarely does a residence of this caliber, built by one of Arizona's most distinguished custom homebuilders and positioned on one of the highest home sites in Paradise Valley, become available. Discover for yourself how 5676 E. Cheney Drive offers a once-in-a-lifetime opportunity to experience true mountaintop luxury living.
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Location
Property Details
Parking
- Description: Attch'd Gar Cabinets, Dir Entry frm Garage, Electric Door Opener, Extnded Lngth Garage, Separate Strge Area, Temp Controlled, Electric Vehicle Charging Station(s)
- Details: Garage Door Opener, Direct Access, Electric Vehicle Charging Station(s)
- Garage Spaces: 3
- Spaces Total: 3
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Total): 6.0
Interior Features
- # of Rooms: 11
- # of Stories: 2
- Basement: Yes
- Basement Description: Finished
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Foam, Metal
- Pool: Yes
HOA
- Has HOA: Yes
- Association: La Place du Sommet
- HOA Fee: $2,062/quarterly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 16902016A
- Lot Size: 65623 sqft
Property Information
- Property Type: Single Family Residence
- Style: Contemporary
- Year Built: 1998
Tax Information
- Annual Tax: $7,934
Utilities
- Water & Sewer: Public
- Heating: Natural Gas
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$18,732
- Cap Rate
- 1.2%
- Cash-on-Cash Return
- -19.5%
- Debt Coverage Ratio
- 0.21
- Internal Rate of Return (5 years)
- -14.9%
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:
| $5,000,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$4,000,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $1,000,000 |
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:
| $150,000 |
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:
| $1,150,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,950 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $840 |
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:
| $1.53 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $4,000,000 |
|---|---|
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:
| $23,662 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $661 |
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:
| $637 |
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:
| $24,960 |
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:
| $9,100 | $109,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$546 | -$6,552 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $8,554 | $102,648 |
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% | -$661 | -$7,934 |
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% | -$637 | -$7,644 |
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% | -$728 | -$8,736 |
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% | -$455 | -$5,460 |
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% | -$455 | -$5,460 |
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. | 8% | -$688 | -$8,256 |
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 | 40% | -$3,624 | -$43,490 |
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:
| $4,930 | $59,160 |
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. | -$23,662 | -$283,944 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | -$18,732 | -$224,784 |