$1,095,000
Investment Summary
- Monthly Cash Flow
- -$3,989
- Cap Rate
- 1.9%
- Cash-on-Cash Return
- -19.0%
- Debt Coverage Ratio
- 0.30
- 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
Open-plan living. Floor-to-ceiling windows. Bringing the outdoors in. These architectural concepts weren't always in vogue. Yet, in a quiet corner of the American West, Utah architect Ron Molen was pioneering a movement. Ron was not merely an architect. He was a planner, an environmentalist and a community thinker. His work defied the conservative architectural mindset of the region by embracing an inspired aesthetic rooted in modernism. His use of clerestory windows, sunken living rooms, and dramatic fireplaces evoke the feeling of an oasis a safe place and a retreat from a busy world and nowhere is Ron's vision more clearly expressed than in Cottonwood Heights' cozy community of Sherwood Hills. Nestled near the mouth of Big Cottonwood Canyon, Sherwood Hills is a hidden jewel-an unpretentious neighborhood with architectural depth and a soul harmonized with its natural surroundings. These homes, characterized by low-pitched roofs, generous windows and exposed beams, demonstrate the seamless integration of the interior with the outdoors. A walk along these streets, and you can't help but feel his philosophy of conscious architecture beautifully at work. Take for example, the residence at 3601 Doverhill Drive. With just over 2,200 square feet of mindfully-laid out living space, the home exemplifies all the elements of a Ron Molen home: oriented to maximize privacy and natural light; constructed with integrity; designed for every day living. The interior of the home recently underwent a complete renovation, and its transformation is stunning. The primary bedroom now comes with an en suite bath with a large tub. The kitchen has been redesigned and relocated and now boasts a new gas range, new cabinetry, new granite counters and stainless steel appliances. New flooring runs throughout the home along with new sheetrock, new, solid-core doors, and new plumbing. The electrical is also new with increased amperage to the home via a new panel. The windows and doors are all high efficiency and, adding architectural detail and functionality, 6 new floor-to-ceiling windows were added. A wonderful surprise: the garage has been converted into a charming apartment, complete with its own Murphy bed, kitchenette, bathroom and a pair of french doors leading out to a private patio. It's the perfect addition for guests or home office or even an art studio. Other recent improvements include new HVAC, new water heater, new storage shed and fencing. The landscaping has been lovingly cared for and now accommodates parking and power for an RV. What makes Ron Molen's work compelling isn't simply its aesthetic-though it is strikingly beautiful. It's that his homes endure. Fifty years later, they still feel contemporary. For those willing to look beyond the obvious and into the evergreen hills of Cottonwood Heights, a legacy awaits. Quietly enduring, this home reminds us that the best architecture doesn't just shelter us-it elevates how we live.
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Location
Property Details
Parking
- Description: Covered, Garage
- Details: RV Access/Parking
- Garage Spaces: 0
- Spaces Total: 2
Bedroom Information
- # of Bedrooms: 4
Bathroom Information
- # of Baths (Full): 1
- # of Baths (Partial): 1
- # of Baths (Total): 3.0
Interior Features
- # of Rooms: 12
- # of Stories: 1
- Basement Description: None
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Masonry
- Roof Material: Rubber, Membrane
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 2225351020
- Lot Size: 10018 sqft
Property Information
- Property Type: Single Family Residence
- Style: Rambler/Ranch
- Year Built: 1969
Tax Information
- Annual Tax: $2,447
Utilities
- Heating: Central, Natural Gas, Electric, Forced Air
- Cooling: Central Air
Location
- County: Salt Lake
Listing Details
Investment Summary
- Monthly Cash Flow
- -$3,989
- Cap Rate
- 1.9%
- Cash-on-Cash Return
- -19.0%
- Debt Coverage Ratio
- 0.30
- 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:
| $1,095,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$876,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $219,000 |
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:
| $32,850 |
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:
| $251,850 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 2,270 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $482 |
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:
| $1.23 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $876,000 |
|---|---|
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:
| 6.810% |
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:
| $5,717 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services. Calculation:Assumes 12% of gross rental income, unless public tax records are available.
Property tax:
| $204 |
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:
| $196 |
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:
| $6,117 |
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:
| $2,800 | $33,600 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$168 | -$2,016 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $2,632 | $31,584 |
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. Calculation:Assumes 12% of gross rental income, unless public tax records are available. | 7% | -$204 | -$2,447 |
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% | -$196 | -$2,352 |
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% | -$224 | -$2,688 |
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% | -$140 | -$1,680 |
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% | -$140 | -$1,680 |
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. Calculation:Assumes 0% gross rental income, unless specified.. | 0% | $0 | $0 |
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 | 32% | -$904 | -$10,847 |
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:
| $1,728 | $20,736 |
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. | -$5,717 | -$68,604 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $3,989 | $47,868 |