$3,295,000
Investment Summary
- Monthly Cash Flow
- -$11,845
- Cap Rate
- 1.4%
- Cash-on-Cash Return
- -18.8%
- Debt Coverage Ratio
- 0.24
- Internal Rate of Return (5 years)
- -14.1%
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
Classic Dave Hansen block construction home on flat R-43 lot w/ hillside feel + stunning Mummy & Horseshoe Mtn views.4BD/6BA/den split plan incl. private primary suite w/ sitting room, 2 walk-in closets, dual toilet rms (1 w/ bidet), sunken tub & courtyards. Original charm throughout—beamed ceilings, 4 fireplaces, sunken formal living rm. Fam rm w/ bar, studio/office w/ sep entry, 3-car garage. Expansive outdoor living: oversized pool, tennis court (room for pickleball), deep patios, citrus trees, mature landscape, & courtyard entry. All BDs en-suite, incl. 1 w/ courtyard access—ideal for guests or live-in. Circular drive adds curb appeal. Lot offers hillside-style privacy & views with no Hillside Review—move right in, update easily, or build new. Tremendous value in prime PV! AS-IS Sale Classic Paradise Valley Luxury with Unmatched Potential Nestled on a prestigious R-43 lot in the heart of Paradise Valley's sought-after Tatum Canyon, this original Dave Hansen-built estate exemplifies timeless Arizona elegance. Crafted with solid block construction and set on a slightly elevated, yet flat and level lot, the property offers the feeling of hillside living without the restrictionsno Hillside Review required. With five bedrooms, six baths, and a sprawling floor plan all on one level (save for a single step into the formal living room), the home offers an unparalleled canvas for tasteful updating or simply enjoying its current charm. Thoughtful Layout & Rich Architectural Details The split floor plan provides ideal privacy and flow, anchored by a sophisticated primary suite complete with a sitting room, fireplace, two walk-in closets, dual private toilet rooms (one with bidet), a dramatic sunken tub, and multiple private courtyards. Throughout the home, rich architectural details aboundfrom beamed ceilings in the family room to four stately fireplaces and original finishes that reflect true pride of ownership. A dedicated studio/office with its own access provides flexibility for work or live-in arrangements. Indoor-Outdoor Living at Its Best Outdoor living is central to this estate's appeal. The grand circular drive welcomes guests into a private, courtyard-style entry that opens to lush gardens with mature trees and citrus. The backyard is a true Arizona oasis with an oversized pool, a tennis court, and deep patios designed for entertaining or quiet retreat. Expansive views of Mummy and Horseshoe Mountains add natural drama to every sunset. Rare Opportunity & Enduring Craftsmanship This is a rare opportunity to own a classic Dave Hansen luxury home at lot value. Known for his meticulous craftsmanship and integration with the natural desert environment, Hansen's homes are among Paradise Valley's most cherished. Whether updating to modern tastes or preserving its iconic style, this property offers both immediate enjoyment and long-term investment value. "AS-IS" Sale Please. About Dave Hanson: Dave Hansen was a distinguished luxury home builder renowned for his exceptional craftsmanship in Paradise Valley, Arizona. His portfolio includes several high-end custom homes, particularly in the prestigious this Tatum Canyon neighborhood Dave Hansen's work is characterized by meticulous attention to detail, integration with natural surroundings, and a commitment to luxury and quality. His homes are a testament to refined taste and enduring craftsmanship in Paradise Valley's luxury real estate market. Features Built by Dave Hansen, renowned for luxury homes in Paradise Valley Solid block construction on a flat, slightly elevated R-43 lot 5 bedrooms / 6 baths with a highly desirable split floor plan Private primary suite with sitting room, sunken tub, two toilet rooms, and courtyards Four fireplaces, including one in the formal living room Oversized pool and full-size N/S tennis court (great for Pickleball) Attached studio/office with exterior access Mature landscaping with citrus trees and lush gardens Expansive mountain views of Mummy and Horseshoe Mountains No Hillside Review required easy update or build new "AS-IS" Sale Please.
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Location
Property Details
Parking
- Description: Covered, Garage
- Details: Garage Door Opener, Direct Access
- Garage Spaces: 3
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Total): 6.0
Interior Features
- # of Rooms: 11
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Other, Tile, Foam
- Pool: Yes
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 16911083
- Lot Size: 38094 sqft
Property Information
- Property Type: Single Family Residence
- Style: Spanish
- Year Built: 1976
Tax Information
- Annual Tax: $8,018
Utilities
- Heating: See Remarks, Electric, Natural Gas
- Cooling: Central Air, Ceiling Fan(s), Other
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$11,845
- Cap Rate
- 1.4%
- Cash-on-Cash Return
- -18.8%
- Debt Coverage Ratio
- 0.24
- Internal Rate of Return (5 years)
- -14.1%
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:
| $3,295,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$2,636,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $659,000 |
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:
| $98,850 |
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:
| $757,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 5,841 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $564 |
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:
| $1.10 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $2,636,000 |
|---|---|
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:
| $15,593 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $668 |
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:
| $448 |
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:
| $16,709 |
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:
| $6,400 | $76,800 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$384 | -$4,608 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $6,016 | $72,192 |
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. | 10% | -$668 | -$8,018 |
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% | -$448 | -$5,376 |
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% | -$512 | -$6,144 |
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% | -$320 | -$3,840 |
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% | -$320 | -$3,840 |
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 | 35% | -$2,268 | -$27,218 |
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:
| $3,748 | $44,976 |
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. | -$15,593 | -$187,116 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $11,845 | $142,140 |