$639,900
Investment Summary
- Monthly Cash Flow
- -$1,933
- Cap Rate
- 2.1%
- Cash-on-Cash Return
- -15.8%
- Debt Coverage Ratio
- 0.36
- Internal Rate of Return (5 years)
- -11.2%
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
Resting on the south shores of Mille Lacs Lake in Wahkon, this distinctive 3 bed/2 bath 1586 sf customized home offers a harmonious balance of modern luxury and historic character. This home is turn-key, fully furnished. Originally built in 1865 and moved to its current location in 1931.The home has natural gas and city sewer. This entire home has been newly remodeled and meticulously crafted, featuring a seamless blend of natural materials including 1 x 8 solid wood hand hewn flooring, black walnut butcher block counter in kitchen, triple ogee edge granite in kitchen and bath, as well as tongue and groove pine throughout the home and converted boathouse. The amazing gourmet kitchen is a home chef’s dream, with high-end Elmira appliances including 6 burner stove, refrigerator and dishwasher. There are butcher block and granite counters, a breakfast bar and gorgeous custom hickory cabinets and a commercial grade SS sink. The open concept living room and dining room offer stunning lake views of Wahkon Bay. New hand crafted one-of-a-kind light fixtures, 6 panel doors, and several custom 2” Anderson doors with hand etched windows designed by a local Minneapolis artist complete the look of this extraordinary residence. The upper-level features 3 spacious bedrooms, and a new uniquely designed bathroom with a deep jetted standalone tub, separate shower and a steam washer/dryer combo, as well as a beautiful hickory and granite vanity. The primary bedroom and second bedroom offer awesome lake views. The exterior of the home has a large wrap around deck with bench seating, new stucco and cement board shakes, new leaf protector gutters, and lawn with beautiful rock landscaping. A new dock is included, and there is a nice concrete boat ramp on this very level lake property. There is a new detached one car garage as well. The 14x20 (280sf) boathouse has been completely converted into a spacious and fun entertainment space featuring a dry bar, a buffet, and large windows and sliding doors for plenty of natural lighting. There is also 130 amp service in the boathouse. Additional features of this property include complete replacement of the entire electrical system, well pump and plumbing, custom metal work throughout home and boathouse, new AC/furnace for second floor, and new high density foam insulation as well as sound wall insulation between bedrooms. This newly customized gorgeous lake home is located only 90 miles from the Twin Cities area, and even the most discerning people will love its beauty and the serenity of the quiet location.
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Location
Property Details
Parking
- Description: Detached, Gravel
- Garage Spaces: 1
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 3
Bathroom Information
- # of Baths (Full): 1
- # of Baths (Total): 2.0
Interior Features
- # of Rooms: 9
- # of Stories: 2
- Basement: Yes
- Basement Description: Block, Concrete
Exterior Features
- Roof Material: Asphalt, Shingle
Land Information
- Land Use: Residential
- Land Use Subtype: Seasonal, Cabin, Vacation Residence
Lot Information
- Parcel ID: 250410090
- Lot Size: 16117 sqft
Property Information
- Property Type: Single Family Residence
- Style: (SF) Single Family
- Year Built: 1930
Tax Information
- Annual Tax: $3,420
Utilities
- Water & Sewer: Private, Well
- Heating: Forced Air
- Cooling: Central Air
Location
- County: Mille Lacs
Listing Details
Investment Summary
- Monthly Cash Flow
- -$1,933
- Cap Rate
- 2.1%
- Cash-on-Cash Return
- -15.8%
- Debt Coverage Ratio
- 0.36
- Internal Rate of Return (5 years)
- -11.2%
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:
| $639,900 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$511,920 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $127,980 |
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:
| $19,197 |
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:
| $147,177 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 1,568 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $408 |
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:
| $1.28 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $511,920 |
|---|---|
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:
| $3,028 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $285 |
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:
| $140 |
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:
| $3,453 |
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:
| $2,000 | $24,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$120 | -$1,440 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $1,880 | $22,560 |
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. | 14% | -$285 | -$3,420 |
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% | -$140 | -$1,680 |
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% | -$160 | -$1,920 |
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% | -$100 | -$1,200 |
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% | -$100 | -$1,200 |
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 | 39% | -$785 | -$9,420 |
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:
| $1,095 | $13,140 |
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. | -$3,028 | -$36,336 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | -$1,933 | -$23,196 |