$2,000,000
Investment Summary
- Monthly Cash Flow
- -$5,825
- Cap Rate
- 2.2%
- Cash-on-Cash Return
- -15.2%
- Debt Coverage Ratio
- 0.38
- Internal Rate of Return (5 years)
- -10.7%
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
Nestled on a beautifully landscaped 1.33-acre lot, this 6,897 sq.ft. residence showcases nearly 180-degree unobstructed views of a protected wooded area from the main living areas-perfect for serene living and entertaining alike. Enjoy the peaceful sounds nature and no neighbors behind! This stunning all-brick estate, a 2004 Parade of Homes winner, offers unmatched craftsmanship, luxury, lifestyle and a perfect location. Thoughtfully designed for multi-generational living, entertaining and everyday comfort, this home features 5 spacious bedrooms, 6 full baths, and 2 half baths, and an abundance of custom finishes throughout. The Main Floor boasts a grand 20-foot foyer with marble flooring, a private office with coffered wood ceiling and built-ins, and a sunroom adjoining formal living and dining rooms. Family room showcases a soaring 16-foot cathedral ceiling, a stack-stone fireplace with new gas logs, and custom built-ins. Gourmet Kitchen with granite counter tops, a center island, breakfast bar, stainless steel appliances, including built-in Sub-zero fridge, Wolf gas cooktop, built-in KitchenAid double oven and microwave, and Bosch dishwasher. Separate wet bar area with mini fridge. First-floor guest suite. Screened porch with wall-mounted TV. Step outside to your flagstone patio with built-in grill, professional outdoor lighting (front and back), 3-car garage and a beautiful circular driveway. The Second Floor offers three ensuite bedrooms with walk-in closets. The expansive Primary suite features dual walk-in closets, dual linen closets, spa-like bath with dual vanities, soaking tub & oversized shower with body jets. A dedicated fitness room with wet bar and interlocking rubber tiles flooring (installed in 2022). 1st & 2nd Floor laundry rooms. Additional storage with three hallway closets. The Third Floor is an entertainer's dream with full wet bar with mini wine cellar and mini beverage cooler. Home theater projector, retractable screen and built-in speakers. Bonus room and separate full bath. Attic with two walk-in storage areas. Central vac system. Elevator shaft for future elevator. Key upgrades & systems: Roof replaced (2022), 4 furnaces and 4 HVAC systems for better temperature control (2014, 2015, 2017, 2017), professionally serviced biannually, and are working in perfect condition. Fitness room flooring (09/2022). Septic system pumped (11/2022). Unpermitted crawl space storage. Kinetico water softener whole house, and purification by reverse osmosis in kitchen, fridge and bar (11/2022). Smart features abound, including several Lutron switches and dimmers throughout the house. 3 WiFi-enabled garage motors with integrated security cameras (08/2022). Rachio WiFi-controlled 16-zone irrigation system (07/2023). 2 whole-home surge protectors (09/2023). Multiple window seals replaced (09/2024). New ceiling fans in all bedrooms (11/2024). Termite Bond through 11/2024. Fireplace maintenance through 02/2026. Fresh paint throughout the house 2024/2025. Thinking about a swimming pool, there's space for it! See pool plans available in documents. Enjoy the amenities of The Registry at Bailey Farm, including a new community pool, clubhouse, and tennis/pickleball courts, and the wonderful community. This is more than a home-it's a lifestyle! See full list of updates in documents. Seller is a licensed Realtor. Home professionally measured by a third party. Please provide pre-approval based on verification of credit or proof of funds for cash offers.
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Location
Property Details
Parking
- Description: Attached, Circular Driveway, Concrete, Driveway, Garage, Garage Door Opener, Garage Faces Side
- Details: Circular Driveway, Concrete, Deck, Driveway, Garage Door Opener, Garage Faces Side, Attached
- Garage Spaces: 3
- Spaces Total: 9
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Full): 6
- # of Baths (Partial): 2
- # of Baths (Total): 8.0
Interior Features
- # of Rooms: 17
- # of Stories: 3
- Basement Description: Crawl Space
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Brick
- Foundation: Block
- Roof Material: Shingle
HOA
- Has HOA: Yes
- HOA Fee: $600/quarterly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 0799.029739620307233
- Lot Size: 57934 sqft
Property Information
- Property Type: Single Family Residence
- Style: Transitional
- Year Built: 2004
Tax Information
- Annual Tax: $11,048
Utilities
- Water & Sewer: Public
- Heating: Heat Pump, Natural Gas
- Cooling: Ceiling Fan(s), Central Air, Heat Pump, Multi Units
Location
- County: Wake
Listing Details
Investment Summary
- Monthly Cash Flow
- -$5,825
- Cap Rate
- 2.2%
- Cash-on-Cash Return
- -15.2%
- Debt Coverage Ratio
- 0.38
- Internal Rate of Return (5 years)
- -10.7%
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:
| $2,000,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,600,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $400,000 |
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:
| $60,000 |
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:
| $460,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 6,897 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $290 |
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:
| $1.00 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,600,000 |
|---|---|
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:
| $9,465 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $921 |
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:
| $483 |
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:
| $10,869 |
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:
| $6,900 | $82,800 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$414 | -$4,968 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $6,486 | $77,832 |
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. | 13% | -$921 | -$11,049 |
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% | -$483 | -$5,796 |
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% | -$552 | -$6,624 |
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% | -$345 | -$4,140 |
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% | -$345 | -$4,140 |
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. | 3% | -$200 | -$2,400 |
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 | 41% | -$2,846 | -$34,149 |
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:
| $3,640 | $43,680 |
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. | -$9,465 | -$113,580 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $5,825 | $69,900 |