$2,095,000
Investment Summary
- Monthly Cash Flow
- -$7,815
- Cap Rate
- 1.2%
- Cash-on-Cash Return
- -19.5%
- Debt Coverage Ratio
- 0.21
- Internal Rate of Return (5 years)
- -14.8%
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
Immaculate single-level and newly upgraded contemporary in West Sedona with very private backyard, red rock views, and a new, guest studio. Built in 2015 by Dorn Homes, this home features a stunning entertainer's backyard with a 35-foot recirculating waterfall stream, built-in pizza oven, 5-hole putting green, and upgraded landscaping. Enjoy the infrared patio heater, ceiling fans, and automated screens year-round. The luxurious courtyard invites relaxation. Inside boasts high-end finishes, quartz counters, a fabulous bar with wine fridge, and new built-ins ideal for showcasing your exclusive art collection. Bosch appliances, tankless water heater, epoxy garage floor, and fresh exterior paint. Home has been meticulously enhanced; exclusive list of luxury upgrades in MLS documents. Interior Upgrades - Built-in bookcases added in office - Jul 2022 - Fireplace façade updated - Jul 2022 - Kitchen, pass-through, wet bar, and laundry room counters upgraded to quartz with 4x16" subway tile backsplash - Jun 2023 - All ceiling fans upgraded to stainless steel high-performance - Jun 2023 - Contemporary ceiling fan added in great room - Jun 2023 - New lighting fixture over dining table - Jun 2023 - Adjustable shelving added in pantry/closet - Feb 2019 - Robe hooks added to master shower - Feb 2019 - New blinds - Drywall touch-up and paint-ready repairs in guest bedroom - Feb 2019 - New studio (added square footage) - Permitted 2021 Windows & Doors - New 8' x 4' window added to den - Jun 2019 - 6' window added in master bedroom - Oct 2024 - 6' unsealed sliding door replaced with window in master - Nov 2024 - Duo-fold blind installed in guest bath - May 2019 - Replaced shower curtain in casita with dual sliding glass doors - Feb 2019 Patio & Exterior Features - Infrared ceiling heater, 2 ceiling fans with lights, and automated roller screen installed on back patio - Jun 2019 - New controller and heating coils for infrared heater - Jun 2020 (maintained 2024) - Automated roller screen added to glass courtyard wall - Aug 2024 - New screen door for courtyard/hallway slider - May 2020 - Fire-table (gas) in courtyard - Napoleon gas BBQ - Concrete countertop drilled into rock for pizza oven - Gutters and downspouts Exterior & Landscaping - Installed 35' recirculating waterfall and stream in backyard - Dec 2021 - Courtyard patio concrete stained - Apr 2025 - Installed 5-hole putting golf green - Apr 2022 - Enhanced landscaping with lilac, pyracantha, and redbud tree - Apr 2019 - Installed Photinia bushes to create edge from neighbor's yard - Feb 2019 - Removed dead trees in upper backyard - Feb 2019 - Dug up around all Deodora Cedar trees and added new mulch - Mar 2025 - Cut and cleared brush and dead limbs around entire property - Jul 2019 - Expanded paver turn-around area in driveway - May 2024 Maintenance & Paint - House painted and all scuppers resealed - Mar 2025 - New steam shower filtration system Appliances & Systems - Whole-house water softener installed - May 2019; replaced with upgraded system - 2023 - Tankless water heater installed - Dec 2022 - New recirculating water pump - Dec 2022 - Bosch dishwasher - Oct 2024 - Bosch refrigerator - May 2024 - Disposal replaced - Aug 2024 - 22" solar tube added to kitchen ceiling - Dec 2024 - 3 new capacitors installed on AC/furnace compressors - May 2024 Roof & Drainage - Entire roof inspected, scuppers and fittings resealed - Jun 2020 - Roof maintained, Amerilastic coating added, refreshed - Jul 2023 & May 2025 - Buried drain installed in courtyard - Feb 2019 Garage - New steel insulated garage doors (3) - May 2024 - New keypads installed on all 3 garage doors - Mar 2019 - Epoxy coated garage floor - Jul 2019 - Storage cabinets installed in garage - Jul 2022 Other Features - Solar (Solar One) - Bidet in primary bedroom - Wine refrigerator - Dog doors - New studio added - 330 electric EV for charging
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Location
Property Details
Parking
- Description: Attached Garage
- Garage Spaces: 3
- Spaces Total: 5
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Total): 4.0
Interior Features
- # of Stories: 1
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Foam, Metal
HOA
- Has HOA: Yes
- Association: Rimstone HOA
- HOA Fee: $68/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 40811564
- Lot Size: 45738 sqft
Property Information
- Property Type: Single Family Residence
- Style: See Remarks, Contemporary
- Year Built: 2015
Tax Information
- Annual Tax: $6,287
Utilities
- Water & Sewer: Public
- Heating: Other, Natural Gas
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Yavapai
Listing Details
Investment Summary
- Monthly Cash Flow
- -$7,815
- Cap Rate
- 1.2%
- Cash-on-Cash Return
- -19.5%
- Debt Coverage Ratio
- 0.21
- Internal Rate of Return (5 years)
- -14.8%
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:
| $2,095,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,676,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $419,000 |
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:
| $62,850 |
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:
| $481,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 3,152 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $665 |
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:
| $1.24 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,676,000 |
|---|---|
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:
| $9,914 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $524 |
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:
| $273 |
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:
| $10,711 |
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:
| $3,900 | $46,800 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$234 | -$2,808 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,666 | $43,992 |
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% | -$524 | -$6,287 |
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% | -$273 | -$3,276 |
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% | -$312 | -$3,744 |
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% | -$195 | -$2,340 |
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% | -$195 | -$2,340 |
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% | -$68 | -$816 |
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% | -$1,567 | -$18,803 |
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:
| $2,099 | $25,188 |
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. | -$9,914 | -$118,968 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $7,815 | $93,780 |