$3,900,000
Investment Summary
- Monthly Cash Flow
- -$14,929
- Cap Rate
- 1.7%
- Cash-on-Cash Return
- -20.0%
- Debt Coverage Ratio
- 0.27
- Internal Rate of Return (5 years)
- -15.3%
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
With its elevated location on the south side of Black Mountain, this stunning modern retreat showcases breathtaking panoramic mountain views from nearly every room. Thoughtfully upgraded with approx. $250K in additional improvements since its complete remodel in 2021/2022, this residence blends timeless style with thoughtful design & modern comfort. Inside the main residence, you're greeted by a spacious layout with tongue-and-groove ceilings, exposed beams, clerestory windows along with custom light fixtures & polished tile floors. The gourmet kitchen is a statement in design with its stunning Fantasy marble countertops, rich Walnut Cabinetry, high-end Thermador & Asko appliances, & two sinks. The open layout of the floor plan connects seamlessly from the kitchen to the formal dining & living area, & sunken Great Room. A gallery-style wall adds character & a touch of creative energy to the space. And, just off the formal living room, across from the wet bar, the climate-controlled wine room showcases storage for over 1,000 bottles, accessed through a stately door made from glass & iron, with porcelain tile lining the interior walls. The main house offers 4 bedrooms, with a luxurious primary suite that lives like a true retreat. It is enhanced by custom wall treatments, restful views, a spa-inspired bathroom & boutique-style closet. Bedrooms two & three each have access to their own full baths, with bedroom three laid out as a formal en-suite. Each of the four bedrooms offers comfort & privacy, thoughtfully positioned in separate corners of the home to maximize personal space. An additional full bathroom near one of the backyard entrances, conveniently located by the driveway, serves as the designated pool bath. The fourth bedroom is currently utilized as a media room with recent AV upgrades. Custom metal art panels provide a striking transition into the oversized office, which comfortably offers room for two workstations & a curved wall of windows framing unobstructed mountain views. The gated courtyard between the main house & detached garage features a beautiful vertical garden wall with a tranquil waterfall feature & artificial turf offering another relaxing space & is the focal point visible from the windows of bedrooms two and three. The Main House, Garage, & Guest House each occupy their own footprint for privacy & flexibility. The guest residence is truly single level living outfitted with a full kitchen, laundry & bath; & a nice-size Great Room with partitioned sleeping quarters all overlooking the elevated mountain views. This space is ideal for long term guests or additional everyday living. Below the guest living quarters, the walkout lower level is currently used as a pickleball practice space with storage, but it could easily be reimagined as an art studio, yoga room, or formal workshop. The outdoor living spaces are as thoughtfully designed as the home's luxurious interior, offering an experience just as inspiring. Expansive covered patios line the back of the home, where a brand-new misting system creates year-round comfort while overlooking the Saltwater Play Pool with its updated heater & filtration system. Artificial turf & pavers surround the pool allowing for easy-care maintenance. Evenings bring a magical backdrop as the sun dips below the mountains, casting golden light across the pool & outdoor spaces. Smart Home automation through the Google Home app controls security, lighting, thermostats, & automated window shades throughout. Additional upgrades also worth mentioning include a fully owned solar panel system, two EV chargers in the detached garage, & a gas fireplace in the family room. The home is fully move-in ready, & furnishings are available on a separate bill of sale. Originally intended as the seller's forever home, a recent lifestyle change now presents a rare opportunity to acquire this thoughtfully enhanced desert retreat, priced below the current owner's total investment.
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Location
Property Details
Parking
- Description: Attch'd Gar Cabinets, Electric Door Opener, Detached, Electric Vehicle Charging Station(s)
- Details: Garage Door Opener, Electric Vehicle Charging Station(s)
- Garage Spaces: 3
- Spaces Total: 5
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Total): 5.0
Interior Features
- # of Rooms: 10
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Foam, Metal
- Pool: Yes
- Solar Panels: Yes
HOA
- Has HOA: Yes
- Association: Grand View 1
- HOA Fee: $2,050/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 21632121
- Lot Size: 140672 sqft
Property Information
- Property Type: Single Family Residence
- Year Built: 1985
Tax Information
- Annual Tax: $8,115
Utilities
- Water & Sewer: Public
- Heating: Natural Gas
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$14,929
- Cap Rate
- 1.7%
- Cash-on-Cash Return
- -20.0%
- Debt Coverage Ratio
- 0.27
- Internal Rate of Return (5 years)
- -15.3%
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:
| $3,900,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$3,120,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $780,000 |
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:
| $117,000 |
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:
| $897,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,980 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $652 |
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:
| $1.52 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $3,120,000 |
|---|---|
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:
| 6.810% |
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:
| $20,361 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $676 |
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:
| $21,674 |
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% | -$676 | -$8,115 |
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. | 2% | -$171 | -$2,052 |
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 | 34% | -$3,122 | -$37,467 |
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:
| $5,432 | $65,184 |
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. | -$20,361 | -$244,332 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $14,929 | $179,148 |