$1,700,000
Investment Summary
- Monthly Cash Flow
- -$6,224
- Cap Rate
- 1.3%
- Cash-on-Cash Return
- -19.1%
- Debt Coverage Ratio
- 0.23
- Internal Rate of Return (5 years)
- -14.5%
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 this stunning mountain home with breathtaking views and iconic Arizona sunsets. This residence was thoughtfully crafted by the artist/owner beginning in 2011. The 2500+ sf addition is seamlessly joined with the 2357 sf original ranch home showcasing rich teakwood, granite, and cedar. Teak cabinetry, walls, and flooring create a warm, elegant atmosphere. Hand-painted desert landscapes and handcrafted solid teak doors add unique charm, while steel and glass exterior doors (9 total) offer security and style. 6 car garages with room for 10 adds to this unique property. An enclosed vestibule opens to a tranquil courtyard with natural stone waterfalls. Inside, the expansive great room and kitchen flow beautifully, with a secondary bedroom and full bath completing the space. Rustic Elegance Meets Desert Serenity in This One-of-a-Kind Primary Suite... Climb the graceful granite and teak staircase from the 2500+ sf addition to a private haven where rustic charm meets refined luxury. This expansive primary suite welcomes you with hand-polished teakwood floors and beautifully etched teak walls, each detail showcasing artisanal craftsmanship and natural warmth. The ambiance is further enriched by desert-inspired artwork and the soft glow of antique Handel lamps, adding a touch of timeless character. Thoughtfully designed for both comfort and style, the suite includes electric blinds and shades, a built-in kitchenette for quiet mornings or evening refreshments, and a spa-like bath featuring a large, stone-accented walk-in shower. Step outside onto the generous covered deck, where sweeping views of the desert landscape stretch to the horizon. With its wood-beamed ceilings, cozy fireplace, overhead electric heaters, and motorized shades, this outdoor living space is ideal for year-round relaxation, whether you're enjoying a golden sunset or a starlit evening. This is more than just a suite, it's a soulful retreat that celebrates nature, craftsmanship, and the art of living well. You can also utilize two oversized garages with large overhead doors and a third bay as a standard 2 car garage. The two larger garage spaces feature 12 foot ceiling heights, tall enough to accommodate car lifts for storage up to eight cars. Additionally, the original main house stands as a testament to timeless desert architecture, rich in character and charm, and now primed for a transformative remodel. With its solid bones and thoughtful layout, this 2-bedroom, 2.5-bath home offers the perfect canvas to create a personalized desert retreat that blends heritage with modern luxury. The family room, featuring **custom teak-inspired bookcases**, looks onto the peaceful central courtyard, offering tranquil views and a seamless connection to indoor-outdoor living. The great room is anchored by vaulted, beamed ceilings and an iconic beehive fireplace, providing an inviting space that honors the home's original Southwestern design. Expansive windows frame panoramic views of the surrounding landscape, flooding the interior with natural light. Just beyond, the covered patio deck invites relaxation with serene views of the sparkling pool, the valley floor and open sky, a perfect setting to enjoy the natural beauty of the desert, day or night. While retaining its soulful architectural details, this home is ready for a visionary update. Whether preserving its rustic aesthetic with modern touches or reimagining it with contemporary finishes. With the right design approach, this residence can become a stunning fusion of historic warmth and modern refinement. The time has come to create a true masterpiece. Rooted in tradition and ready for its next chapter, this original portion of the estate offers a rare opportunity to create a one-of-a-kind home that reflects both your personal style and the enduring beauty of the Southwest. For more descriptive details, please review the photos of this very special property. ---
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Location
Property Details
Parking
- Description: RV Access/Parking, Shared Driveway
- Details: RV Access/Parking, Garage Door Opener, Direct Access
- Garage Spaces: 6
- Spaces Total: 6
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Total): 5.0
Interior Features
- # of Rooms: 6
- # of Stories: 2
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Tile, Built-Up
- Pool: Yes
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 21924177F
- Lot Size: 82143 sqft
Property Information
- Property Type: Single Family Residence
- Style: Ranch
- Year Built: 1974
Tax Information
- Annual Tax: $4,648
Utilities
- Water & Sewer: Public
- Heating: Electric
- Cooling: Central Air, Ceiling Fan(s)
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$6,224
- Cap Rate
- 1.3%
- Cash-on-Cash Return
- -19.1%
- Debt Coverage Ratio
- 0.23
- Internal Rate of Return (5 years)
- -14.5%
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:
| $1,700,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,360,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $340,000 |
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:
| $51,000 |
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:
| $391,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 4,857 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $350 |
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:
| $0.66 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,360,000 |
|---|---|
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:
| $8,045 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $387 |
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:
| $224 |
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:
| $8,656 |
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:
| $3,200 | $38,400 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$192 | -$2,304 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,008 | $36,096 |
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. | 12% | -$387 | -$4,648 |
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% | -$224 | -$2,688 |
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% | -$256 | -$3,072 |
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% | -$160 | -$1,920 |
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% | -$160 | -$1,920 |
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 | 37% | -$1,187 | -$14,248 |
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:
| $1,821 | $21,852 |
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. | -$8,045 | -$96,540 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $6,224 | $74,688 |