$935,000
Investment Summary
- Monthly Cash Flow
- -$3,117
- Cap Rate
- 1.7%
- Cash-on-Cash Return
- -17.4%
- Debt Coverage Ratio
- 0.30
- Internal Rate of Return (5 years)
- -12.8%
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
Unique 1.9-Acre Compound at the Base of the Superstition Mountains! Discover a rare opportunity to own a serene desert retreat featuring three single-family homes on a breathtaking expansive 1.9-acre parcel, all nestled against the stunning backdrop of the Superstition Mountains. This remarkable property offers versatility and charm, perfect for a family retreat or an investment compound. Hosting a total of 7 bedrooms & 4 baths can yield incredible income or an amazing retreat for family & friends! The owner has taken impeccable care of this estate and it shows in each of the homes and surrounding area.. Property Highlights: Three Distinct Homes: 831 N Arroya Rd: A fully renovated 2-bedroom, 1-bath home with a brand-new kitchen, updated baths, flooring, paint, and appliances. This single-level residence includes a one-car garage, ample storage, and boasts stylish upgrades throughout. 843 N Arroya Rd: This unique DUPLEX upper level 2-bedroom, 1-bath home features a beautifully updated kitchen and bath, stone tile flooring on the lower level with 2 beds 1 bath offers a striking half-moon fenced outdoor courtyard surrounded by native Sonoran Desert landscaping. 867 N Arroya Rd: A charming 2-bedroom, 1-bath home with an enclosed Arizona room, temperature-controlled for year-round comfort. The property also includes an RV hookup, an expansive brick-paver patio, and meticulous updates. Modern Updates: All homes have newer windows, BRAND NEW roofs, and HVAC systems, ensuring peace of mind and energy efficiency. Renovated kitchens with brand-new cabinets, appliances, and fixtures in 831 and 843. All bathrooms have been retiled and updated to reflect modern design and convenience. The seller is offering a 1 year home warranty on each of homes. Utilities: All homes are connected to city water and have individual septic systems, each inspected annually by Cooper's Sewer and Drain. Location: Enjoy the ultimate Sonoran Desert experience with unparalleled views of the Superstition Mountains. This property's prime location offers a tranquil retreat while being conveniently accessible. All home inspections have been completed and corrections have been completed including new water heaters. Endless Possibilities: Whether you envision a private family compound or an income-generating investment, this property delivers unmatched flexibility, functionality, and pride of ownership throughout. Don't miss this chance to own a slice of paradise with stunning mountain views and endless potential.
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Location
Property Details
Parking
- Description: Open, Covered, Carport, Garage
- Garage Spaces: 1
- Spaces Total: 2
Bedroom Information
- # of Bedrooms: 2
Bathroom Information
- # of Baths (Total): 1.0
Interior Features
- # of Stories: 1
Exterior Features
- Exterior Walls Materials: Wood Siding
- Roof Material: Composition
Land Information
- Land Use: Residential
- Land Use Subtype: Rural/Agricultural
Lot Information
- Parcel ID: 10023028F
- Lot Size: 27195 sqft
Property Information
- Property Type: Single Family Residence
- Year Built: 1984
Tax Information
- Annual Tax: $867
Utilities
- Water & Sewer: Public
- Heating: Electric
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Pinal
Listing Details
Investment Summary
- Monthly Cash Flow
- -$3,117
- Cap Rate
- 1.7%
- Cash-on-Cash Return
- -17.4%
- Debt Coverage Ratio
- 0.30
- Internal Rate of Return (5 years)
- -12.8%
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:
| $935,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$748,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $187,000 |
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:
| $28,050 |
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:
| $215,050 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 780 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $1,199 |
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:
| $2.56 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $748,000 |
|---|---|
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:
| $4,425 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $72 |
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:
| $4,637 |
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. | 4% | -$72 | -$867 |
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 | 29% | -$572 | -$6,867 |
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:
| $1,308 | $15,696 |
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. | -$4,425 | -$53,100 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $3,117 | $37,404 |