$550,000
Investment Summary
- Monthly Cash Flow
- -$1,445
- Cap Rate
- 2.5%
- Cash-on-Cash Return
- -13.7%
- Debt Coverage Ratio
- 0.44
- Internal Rate of Return (5 years)
- -9.3%
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
This beautifully updated 3-bedroom, 4-bathroom home offers the perfect blend of modern comfort and everyday convenience. Inside, you'll find a variety of recent upgrades, while the highly sought-after location provides easy access to shopping, dining, entertainment, and major highways. Plus, it’s just a short walk to Lewis Park and several scenic walking trails. The home welcomes you with a grand foyer featuring soaring 18-foot ceilings, luxury plank flooring, and a convenient storage closet. Just off the entry, you'll also find access to the attached two-car garage and the laundry room. The kitchen, beautifully updated in 2022, is light, bright, and airy with soaring 18-foot vaulted ceilings. It features abundant white cabinetry for extra storage, stainless steel appliances including a cooktop and double oven, and sleek quartz countertops. A spacious center island with breakfast bar seating adds both functionality and style. The dining room features luxury plank flooring and a modern, stylish chandelier. It offers direct access to the brand-new deck, making it perfect for seamless indoor-outdoor entertaining. Spacious living room with soaring 18-foot vaulted ceilings, large sun-filled windows, luxury vinyl plank flooring, and a cozy gas fireplace with a sleek tile surround—perfect for relaxing or entertaining. The main floor half bathroom features a stylish single vanity with quartz countertops and ample storage. It also includes tile flooring and a convenient hallway linen closet nearby. The spacious primary bedroom, located on the second level, features 12-foot vaulted ceilings with a ceiling fan, cozy carpeting, and a charming bay window overlooking the front of the unit. It also includes two generous 7x5 walk-in closets, offering plenty of space for all your wardrobe needs. The private ensuite bathroom boasts vaulted ceilings, tile flooring, a double vanity with quartz countertops, a walk-in shower, and an oversized soaking tub with a tile surround—perfect for unwinding at the end of the day. A few steps up, you'll find the second bedroom, which overlooks the living room below with an open railing that adds a touch of architectural charm. This spacious bedroom features cozy carpeting, a ceiling fan, a large closet, and a window with views of the backyard. Just steps away is a nearby ¾ bathroom, complete with tile flooring, a single vanity, a walk-in shower, and a generously sized linen cabinet for added storage. The finished lower level offers a spacious family room, perfect for relaxing or entertaining. A newly installed wet bar—complete with a sink, mini fridge, and quartz countertop (added in 2022)—adds both style and convenience. The space also provides a large storage closet and walkout access to the backyard. Bedroom three, located on the lower level, is spacious and carpeted, with a ceiling fan and windows offering views of the backyard. It features a 9x6 walk-in closet for ample storage and is just steps away from a convenient ¾ bathroom, complete with a single vanity, walk-in shower, and tile flooring. Don't miss out on this beautiful townhome in a prime location, featuring numerous updates including a newly renovated kitchen, brand-new quartz vanities in all four bathrooms, a new wet bar in the lower level, and luxury plank flooring and carpeting throughout, all installed in 2022. Enjoy low-maintenance living with exterior upkeep covered—annual window washing, dryer vent cleaning, and garbage service are all included with the HOA.
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Location
Property Details
Parking
- Description: Attached Garage, Garage Door Opener
- Details: Asphalt
- Garage Spaces: 2
- Spaces Total: 0
Bedroom Information
- # of Bedrooms: 3
Bathroom Information
- # of Baths (Full): 1
- # of Baths (Partial): 1
- # of Baths (Total): 4.0
Interior Features
- # of Rooms: 10
- Basement: Yes
- Basement Description: Finished, Walk-Out Access, Full, Storage Space
HOA
- Has HOA: Yes
- Association: Multi Venture Properties Ted Schwarz
- HOA Fee: $530/monthly
Land Information
- Land Use: Residential
- Land Use Subtype: Townhouse
Lot Information
- Parcel ID: 0811621420384
- Lot Size: 2613 sqft
Property Information
- Property Type: Townhouse
- Style: (TH) Side x Side
- Year Built: 1986
Tax Information
- Annual Tax: $5,417
Utilities
- Heating: Forced Air
Location
- County: Hennepin
Listing Details
Investment Summary
- Monthly Cash Flow
- -$1,445
- Cap Rate
- 2.5%
- Cash-on-Cash Return
- -13.7%
- Debt Coverage Ratio
- 0.44
- Internal Rate of Return (5 years)
- -9.3%
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:
| $550,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$440,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $110,000 |
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:
| $16,500 |
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:
| $126,500 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 3,000 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $183 |
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:
| $1.03 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $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:
| $2,603 |
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:
| $451 |
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:
| $217 |
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:
| $3,271 |
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:
| $3,100 | $37,200 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$186 | -$2,232 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $2,914 | $34,968 |
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. | 15% | -$451 | -$5,417 |
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% | -$217 | -$2,604 |
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% | -$248 | -$2,976 |
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% | -$155 | -$1,860 |
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% | -$155 | -$1,860 |
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.. | 17% | -$530 | -$6,360 |
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 | 57% | -$1,756 | -$21,077 |
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:
| $1,158 | $13,896 |
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. | -$2,603 | -$31,236 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $1,445 | $17,340 |