$1,650,000
Investment Summary
- Monthly Cash Flow
- -$5,086
- Cap Rate
- 2.6%
- Cash-on-Cash Return
- -16.1%
- Debt Coverage Ratio
- 0.41
- Internal Rate of Return (5 years)
- -11.6%
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
Welcome to a private courtyard oasis featuring a fountain and lush greenery. Inside, soaring wood ceilings and natural light enhance the great room and formal dining, with travertine flooring. The kitchen includes a newer dishwasher and microwave/oven, a breakfast room looking out to the courtyard, and patio. The primary suite offers sunrise views, a walk-in closet, a spa-like bath and a glass-block shower. Upstairs, a guest suite adjoins a cozy loft, while two additional bedrooms and a separate private office are on the main level. The garage includes storage and durable finishes. The largest lot in Las Palomas, the landscaped yard features smart irrigation. Enjoy this guard-gated community with lakes, pickleball, tennis, pools, and walking paths, all near Scottsdale's fine amenities. Full Description: A custom fountain and lush greenery welcome you into the private courtyard. The unique stone design in the entry further invites you into an awesome Great Room and Formal Dining with stunning soaring wood ceilings. Natural light fills the room's interior. Low-maintenance tumbled-edge travertine flooring covers the floor of the main rooms and traffic areas, while bedrooms are comfortably carpeted. The charming Kitchen includes a Bosch Dishwasher, and a GE Profile Microwave/Oven purchased this year. Adjacent is a delightful Breakfast Room which serenely overlooks the front Courtyard as well as the patio and side yard. In the expansive downstairs Primary Suite, the attractive bay window frames a view of your own orange tree and a beautiful morning sunrise. The walk-in closet is conveniently appointed. The Spa-like bath area is slate tile with a separate water closet, a Jacuzzi tub and a large glass block shower. The upstairs Primary Guest Suite has an abundance of closet and storage space and is adjacent to a Loft/ TV room. A separate private Office filled with natural light and its own exit is located on the main level with Bedrooms 3 and 4 which are spacious, each with an adjacent bathroom and one with an exterior exit to the courtyard. Great room configurations for maximum privacy. Must see to fully appreciate! This home was lovingly designed with many custom features. If you have an affinity for texture, you'll love living here! It is a unique interior for entertaining or for family fun! The large garage has extensive cabinets and a storage room for the plumbing equipment which includes a recirculation pump for hot water and a purifying system. There are two separate electric breaker systems with two HVAC units regulated by Nest Smart thermostats. The Ring Security System includes four cameras. Separate LiftMaster garage doors are operated by a smart system and automatic lights. Chip Polyurethane covers the garage floor and Chip Rubber Stone covers the Service area. The HOA Fee reflects two lots combined to form the largest lot in Las Palomas. This results in your very own resort-like oasis in the midst of urban convenience. The meticulously landscaped courtyards are complete with lush vegetation using the Orbit B-Hyve Smart System for irrigation in conjunction with EZ-Flo Maxx Build System for a seamless infusion of water and fertilizer. It is adjusted quarterly to meet the seasonal need of plants. Living in the prestigious community of Las Palomas (meaning 'the doves', a symbol of peace) offers a wealth of amenities. Take full advantage of enjoying the security of a guard-gated community with private lake access. It features pickleball and tennis courts, swimming pool, spa, outdoor chess and shuffleboard, a dog park, tranquil water features and sitting areas which are all designed for a carefree, resort-like lifestyle. The Community is exceptionally well maintained and friendly. The HOA Board meets monthly except in summer. All homeowners are encouraged to attend. Las Palomas is within walking distance of many restaurants and coffee shops, ensuring unparalleled luxury, leisure, and convenience. It is an oasis surrounded by parks, lakes, and a walking path traversing 11 miles through the heart of Scottsdale. Life is beautiful at Las Palomas!
Build Your Team
Quickly find investor-friendly professionals who can help you succeed in real estate investing at any stage of the investing journey.
Agents
Match with investor-friendly agents who can help you find, analyze, and close your next deal
Lenders
Get the best funding…find investor-friendly lenders who specialize in your deal strategy
Property Managers
Transition to passive investing. Find a trusted property management partnership that lasts.
Tax Pros & Accountants
Taxes and financial reporting made easy—find experts to create tax savings strategies, file taxes, and more
Location
Property Details
Parking
- Description: Attch'd Gar Cabinets, Electric Door Opener, RV Gate
- Details: Garage Door Opener
- Garage Spaces: 2
- Spaces Total: 2
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Total): 4.0
Interior Features
- # of Stories: 2
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Built-Up, Foam
- Pool Community: Yes
HOA
- Has HOA: Yes
- Association: Las Palomas
- HOA Fee: $958/monthly
- Additional Association: McCormick Ranch
- Additional HOA Fee: $260/annually
Land Information
- Land Use: Residential
- Land Use Subtype: Townhouse
Lot Information
- Parcel ID: 17402616
- Lot Size: 9856 sqft
Property Information
- Property Type: Townhouse
- Style: Spanish
- Year Built: 1991
Tax Information
- Annual Tax: $4,364
Utilities
- Water & Sewer: Public
- Heating: Electric
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$5,086
- Cap Rate
- 2.6%
- Cash-on-Cash Return
- -16.1%
- Debt Coverage Ratio
- 0.41
- Internal Rate of Return (5 years)
- -11.6%
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:
| $1,650,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,320,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $330,000 |
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:
| $49,500 |
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:
| $379,500 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 3,520 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $469 |
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:
| $2.02 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,320,000 |
|---|---|
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:
| 6.840% |
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:
| $8,641 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $364 |
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:
| $497 |
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:
| $9,502 |
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:
| $7,100 | $85,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$426 | -$5,112 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $6,674 | $80,088 |
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. | 5% | -$364 | -$4,364 |
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% | -$497 | -$5,964 |
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% | -$568 | -$6,816 |
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% | -$355 | -$4,260 |
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% | -$355 | -$4,260 |
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. | 14% | -$980 | -$11,760 |
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 | 44% | -$3,119 | -$37,424 |
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:
| $3,555 | $42,660 |
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. | -$8,641 | -$103,692 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $5,086 | $61,032 |