$1,800,000
Investment Summary
- Monthly Cash Flow
- -$6,576
- Cap Rate
- 1.3%
- Cash-on-Cash Return
- -19.1%
- Debt Coverage Ratio
- 0.23
- Internal Rate of Return (5 years)
- -14.4%
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
Nestled against the breathtaking backdrop of South Mountain Nature Preserve, this exceptional contemporary residence in the exclusive, gated community of Avance is the epitome of refined living. Presenting the highly coveted Alta 2 plan, this home seamlessly blends modern elegance with functional design, offering a living experience like no other. With an expansive 4,620 square feet of thoughtfully designed living space, this stunning home features four spacious bedrooms, three and a half bathrooms, a dedicated office, a versatile multi-purpose room, and an exquisite generational suite, all meticulously arranged on a single level for ultimate convenience. From the moment you enter it's clear that no detail has been overlooked. This custom-built masterpiece is equipped with cutting-edge smart home technology, including pre-wiring for automated lighting, blinds, and curtains, allowing for seamless control at the touch of a button. This stunning home has an expansive great room, with upgraded 15ft ceilings and 10ft ceilings everywhere else, giving the whole house an airy, spacious feel. The home is set on an expansive premium lot valued at $90,000, spanning over a third of an acre. With sweeping mountain views and awe-inspiring sunsets, this tranquil property offers an unparalleled connection to nature, while remaining fully integrated with modern convenience. The owners have invested nearly $760,000 in both builder and after-market upgrades, ensuring that every corner of this home reflects the highest standards of quality and luxury. Outdoor Living Redefined- Step outside and be enveloped by the serene, Zen-inspired backyard, a true sanctuary in the desert. Designed to evoke peace and tranquility, the space features a striking Ramada seating area, a gas fire pit, and a built-in BBQ, making it the perfect environment for both relaxation and entertaining. The crowning jewel of this outdoor oasis is the 60-foot lap pool, which includes a large Baja shelf and was thoughtfully designed with inspiration drawn from the art of Frank Lloyd Wright. Surrounded by lush, mature Arizona-native trees, the landscape offers privacy, beauty, and a sense of peace that blends seamlessly with the desert surroundings. Sustainability Meets Sophistication- At the heart of this home lies a commitment to sustainability. The property boasts a prestigious LEED Gold Certification and has been constructed using the LivingSmart program, which focuses on energy efficiency, water conservation, and environmentally friendly design. As an added bonus, the home is outfitted with a remarkable $100,000 solar energy package, including Enphase solar roof panels and four Tesla Powerwall, owned outright. A Span Wi-Fi connected sub-panel provides total control over energy consumption, while two NEMA 14-50 240v 50A outlets in the garage offer convenient charging options for electric vehicles or the ability to power large appliances. Modern Luxury with a Touch of Adventure- Avance isn't just a place to live; it's a lifestyle. Blending contemporary architectural design with the rugged beauty of the surrounding desert, this community offers a one-of-a-kind living experience. Here, the charm of the landscape meets the elegance of modern luxury. With unrivaled views of South Mountain, residents enjoy a life of serenity and refinement. For those who seek recreation, Avance offers an array of resort-style amenities, including sparkling community pools, a relaxing hot tub, a state-of-the-art fitness center, and a peaceful yoga space. Whether you're exploring the expansive hiking and biking trails within South Mountain Park and Preserve or retreating to your stylish sanctuary, this community caters to both the adventurer and the homebody. Unbeatable Location- The beauty of Avance extends beyond its gates. Situated in a prime location, this community offers the perfect balance of tranquility and accessibility. Just a short drive from the vibrant downtown Phoenix entertainment and business district, as well as the bustling city of Tempe, residents are never far from exceptional dining, shopping, and cultural experiences. Additionally, Sky Harbor International Airport is just minutes away, ensuring convenient travel access. A New Chapter Begins at Avance- This is more than just a home; it's a lifestyle. It's a place where modern luxury meets nature's grandeur. It's where every sunset paints the sky over South Mountain, and every day is a fresh start in a community designed for ultimate convenience, relaxation, and adventure. At Avance, you'll discover a new standard of living where sophisticated design, sustainable living, and the unmatched beauty of South Mountain come together in perfect harmony. Don't miss the opportunity to call this stunning contemporary masterpiece your home. Refined living awaits-your desert oasis begins here!
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Location
Property Details
Parking
- Description: Garage
- Details: Garage Door Opener, Direct Access, Electric Vehicle Charging Station(s)
- Garage Spaces: 4
- Spaces Total: 3
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Total): 4.0
Interior Features
- # of Stories: 1
Exterior Features
- Exterior Walls Materials: Stucco
- Roof Material: Tile
- Pool: Yes
HOA
- Has HOA: Yes
- Association: Avance Communities
- HOA Fee: $190/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 30071137
- Lot Size: 16479 sqft
Property Information
- Property Type: Single Family Residence
- Style: Contemporary, Ranch
- Year Built: 2021
Tax Information
- Annual Tax: $7,537
Utilities
- Water & Sewer: Public
- Heating: Electric
- Cooling: Central Air, Ceiling Fan(s), ENERGY STAR Qualified Equipment
Location
- County: Maricopa
Listing Details
Investment Summary
- Monthly Cash Flow
- -$6,576
- Cap Rate
- 1.3%
- Cash-on-Cash Return
- -19.1%
- Debt Coverage Ratio
- 0.23
- Internal Rate of Return (5 years)
- -14.4%
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:
| $1,800,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$1,440,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $360,000 |
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:
| $54,000 |
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:
| $414,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 4,625 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $389 |
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:
| $0.86 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $1,440,000 |
|---|---|
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:
| $8,518 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $628 |
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:
| $280 |
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:
| $9,426 |
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:
| $4,000 | $48,000 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$240 | -$2,880 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $3,760 | $45,120 |
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. | 16% | -$628 | -$7,537 |
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% | -$280 | -$3,360 |
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% | -$320 | -$3,840 |
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% | -$200 | -$2,400 |
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% | -$200 | -$2,400 |
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. | 5% | -$190 | -$2,280 |
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 | 45% | -$1,818 | -$21,817 |
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:
| $1,942 | $23,304 |
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. | -$8,518 | -$102,216 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | -$6,576 | -$78,912 |