This rent estimate comes from the property manager and is based on available information and her experience. The lower end of the range reflects minimal renovations, while the higher end reflects full renovations. We generally reevaluate the rent three or four times during our process. This is the second estimate.
Assumption: closing cost 3%, interest rate 6.5%, down payment rate 30%
Below is a five-year pro forma based on the above rent projection and the current asking price. Use the link below to download the spreadsheet so you can include your assumptions. The rent and price growth projections are based on a study explained in this article.
| Purchase Price | 380000 | |||||
| Rent (Mo) | 2095 | |||||
| Annual Rent Growth Rate (%) | 8% | |||||
| Annual Appreciation Rate (%) | 10% | |||||
| Fees (Mo) | 48 | |||||
| Insurance (Yr) | 800.0 | |||||
| Property Tax (Yr) | 1320 | |||||
| Management (%) | 8% | |||||
| Closing Cost Financed (%) | 3% | |||||
| Additional Closing Cost | 0 | |||||
| Closing Cost Cash | 2000 | |||||
| Loan Rate (%) | 6.5% | |||||
| Loan Term (Yrs) | 30 | |||||
| Down (%) | 30% | |||||
| Debt Service | 1681 | |||||
| Acquisition Cost | ||||||
| Down Payment | -114000 | |||||
| Closing Cost | -11400 | |||||
| Total Acquisition Cost | -125400 | |||||
| Income (Mo) at 10% | ||||||
| Year | 1 | 2 | 3 | 4 | 5 | |
| Rent | 2095 | 2263 | 2444 | 2640 | 2851 | 3079 |
| Recurring Expenses (Mo) | ||||||
| Debt Service | -1681 | -1681 | -1681 | -1681 | -1681 | -1681 |
| Management | -168 | -181 | -196 | -211 | -228 | -246 |
| Insurance | -67 | -67 | -67 | -67 | -67 | -67 |
| Property Tax | -110 | -110 | -110 | -110 | -110 | -110 |
| Fees | -48 | -48 | -48 | -48 | -48 | -48 |
| Total | -2074 | -2087 | -2102 | -2117 | -2134 | -2152 |
| Return (Financed) | ||||||
| Cash Flow Financed (Mo) | 21 | 176 | 342 | 523 | 717 | 927 |
| ROI Financed | 0.18% | 1.54% | 3.0% | 4.59% | 6.29% | 8.13% |
| Return (Cash) | ||||||
| Cash Flow Cash (Mo) | 1702 | 1857 | 2023 | 2204 | 2398 | 2608 |
| ROI Cash | 5.35% | 5.83% | 6.35% | 6.92% | 7.53% | 8.19% |
| Appreciation at 10% | ||||||
| Year | 1 | 2 | 3 | 4 | 5 | |
| Market Value / Equity with Cash | 380000 | 418000 | 459800 | 505780 | 556358 | 611994 |
| Equity with 30% Down | 114000 | 152000 | 193800 | 239780 | 290358 | 345994 |
| Item | Amount | Item | Amount | Item | Amount |
|---|---|---|---|---|---|
| Asking Price | $389900 | SqFt | 1165 | Garage | 2 |
| $/SqFt | $335.0 | Lot SqFt | 4792 | Year Built | 1987 |
| Days on Market | 50 Days | Beds | 3 | Private Pool | No |
| Initial Price | $389900 | Baths | 2 | Green Valley South | |
| Fees | $48/Mo | Stories | 1 |
| MLS | Dist | Price | SqFt | $/SqFt | Beds | Garage | Built | Lot | Close | Days | Stories | Address | Pool |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2613284 | 0.05 | 1750 | 1165 | 1.5 | 3 | 2 | 1987 | 4356 | 2024-11-08 | 64 | 1 | 316 Carrington St | No |
| 2629185 | 0.03 | 1925 | 1351 | 1.42 | 3 | 2 | 1994 | 4792 | 2024-12-01 | 29 | 1 | 325 Cavalla St | No |
| 2633704 | 0.19 | 1850 | 1165 | 1.59 | 3 | 2 | 1987 | 4356 | 2024-12-04 | 15 | 1 | 2424 Millcroft Dr | No |
| MLS | Dist | Price | SqFt | $/SqFt | Beds | Garage | Built | Lot | Close | Days | Stories | Address | Pool |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2563938 | 0.03 | 395000 | 1351 | 292 | 3 | 2 | 1994 | 4792 | 2024-10-15 | 101 | 1 | 325 Cavalla St | No |
| 2620648 | 0.19 | 395000 | 1368 | 288 | 3 | 2 | 1989 | 4356 | 2024-11-21 | 20 | 1 | 2489 Muirfield Ave | No |
| 2627391 | 0.11 | 409900 | 1368 | 299 | 3 | 2 | 1987 | 4792 | 2024-12-10 | 16 | 1 | 318 Brent Ct | No |
| 2632001 | 0.28 | 420000 | 1368 | 307 | 3 | 2 | 1989 | 5227 | 2024-12-20 | 25 | 1 | 2434 Muirfield Ave | No |
This property can be rented for FR $1950 - $2095 / MR $1750 - $1895. Based on activity level, price adjustments will be recommended.Green Valley is known for its abundant greenery and mature trees. The well-developed area offers plenty of shopping, restaurants, and parks nearby. Easy access to the highway makes commuting to the airport and the strip a breeze.4
: Tile roof, desert landscape, covered entry, raised panel doors, covered patio, upgraded master bathroom,
Probable Rent Range After Renovtion: $1950 to $2095
The following estimate is based only on the limited available information. The estimate is only an educated guess intended to provide a general idea of the renovation cost, not the actual cost. We included a cost pad to cover the smaller cost items and unknown costs. The unknown costs could be significantly more than the estimate below. We will not have an accurate renovation cost estimate until the property is under contract, all inspections are complete, and quotes obtained from appropriate vendors. At that time, we will reevaluate the property. If it still makes sense, we will proceed to close. If not, cancel the purchase and look for another property. During due diligence, after we have quotes for all proposed items, we'll finalize the renovation list during a Zoom meeting with you, the property manager, and Fernwood team members.
Renovation items generally fall into two distinct categories:
Turn cost considerations Every time your property returns to the market (tenant turn), we evaluate its condition against the current competition. For example, if your property has laminate kitchen counters and competing rentals have granite, you might need to upgrade the counters so the property will rent at full market value within a reasonable timeframe. So, if you choose not to perform some enhancements today, you may still have to do them in the future for the property to be competitive.
| Name | Quantity | Rate | Extended | Note |
|---|---|---|---|---|
| min:Refrigerator (0/1) | 1.0 | 1500.0 | 1500 | Appliances - All appliance prices are for used appliances. Used appliances typically cost about 50% of the price of new appliances. Used appliances may have minor dings and dents, which is acceptable in a rental property. Used appliances typically have a three-month warranty. |
| min:Caulk (0/1) | 1.0 | 85.0 | 85 | Caulk - Caulk all bathrooms as needed. |
| min:Single sink top (#) | 1.0 | 800.0 | 800 | Double sink top - Granite vanity top, including under-mount sinks and faucets. |
| min:Toilet seat (#) | 1.0 | 35.0 | 35 | |
| min:Exterior door lock (#) | 2.0 | 150.0 | 300 | Exterior door lock - Replace current lock and handle/knob with Kwikset SmartKey deadbolt and matching pass knob. |
| min:Glass door rollers (#) | 1.0 | 150.0 | 150 | Over time the rollers that support the sliding glass door wear down or flatten making the door difficult to open or close. Replacing the rollers corrects this problem. |
| min:Nickel door knobs (#) | 1.0 | 35.0 | 35 | Nickel door knobs - Replace the current (brass/old/inconsistent) knobs with brushed nickel knobs. |
| min:Landscape cleanup (#) | 4.0 | 100.0 | 400 | Landscape cleanup - One-time landscape cleanup, including tree/foliage trimming as needed. Also, verify that the irrigation is working and properly programmed and the battery replaced. |
| min:Remove Satellite dish (#) | 1.0 | 165.0 | 165 | We remove existing satellite dishes for two reasons. First, tenants who want satellite service often attempt to use the existing dish, which may not be compatible with their chosen service provider. By removing existing dishes, we avoid unnecessary service calls and potential complications. |
| Install carpet (SF) | 233 | 1.85 | 431 | Carpet - We use a light commercial-grade nylon carpet. It is both very durable and cleans well. Plus, color consistency has been excellent, enabling us to replace areas as needed. The price also includes a carpet pad. The quanty is derived from a formula and is only an estimate. During due diligence the quantity needed will be be measured. |
| Remove carpet or laminate (SF) | 233 | 1.0 | 233 | The quanty is derived from a formula and is only an estimate. During due diligence the quantity needed will be be measured. |
| min:Goose neck faucet (0/1) | 1.0 | 220.0 | 220 | |
| min:Granite counters (0/1) | 1.0 | 3800.0 | 3800 | Granite or quartz - Occasionally, we can source quartz countertops at a cost similar to granite. Quartz is viewed as more luxurious. Consequently, if the price is comparable, we opt for quartz. This price typically includes an undermount sink and a gooseneck faucet. |
| min:Track light (0/1) | 1.0 | 200.0 | 200 | |
| min:Bath Light (#) | 2.0 | 65.0 | 130 | |
| min:Install wiring + ceiling fan (#) | 3.0 | 390.0 | 1170 | Install wiring for a ceiling fan and install the fan. |
| min:Cabinet/Drawer pulls (#) | 1.0 | 14.0 | 14 | Cabinet/Drawer pulls - Pulls make the cabinets look better and protect the cabinet surface. Pulls are especially important for painted cabinets. If people touch the painted cabinet edge to open/close the cabinet, the paint will chip and peel. If this occurs, the cabinets will need to be touched up or repainted. |
| min:Cost pad (#) | 15.0 | 500.0 | 7500 | Pad for unexpected items found during the inspection and small items. This amount may be removed or adjusted once inspections are complete and we have quotes for all work. |
| min:Janitorial (1) | 1.0 | 320.0 | 320 | Janitorial - Once the renovation is complete, the property will be cleaned, including interior window washing where feasible. |
| min:Junking budget (#) | 1.0 | 100.0 | 100 | Junking budget - Budget for removing debris left in the property after the close. The amount shown is a guess (a placeholder) until we receive the quote(s) from the appropriate vendor(s) after the property is vacant. If no debris is left, the cost will be removed. |
| min:Make ready (1) | 1.0 | 300.0 | 300 | Make ready - Replace all burnt and pigtail style bulbs, installing 4K light bulbs in all bathrooms, and replacing HVAC filters (price is subject to change depending on filter and bulb quantity) |
| min:Professional photos (1) | 1.0 | 120.0 | 120 | Professional photos - We will arrange for a real estate photographer to take the marketing photos when the renovation is complete. The cost will be $120. The photographer will bill separately at that time; the cost is included in the total to make you aware of this expense. |
| min:Remove alarm w paint (0/1) | 1.0 | 125.0 | 125 | Remove Alarm and sensors - If an alarm system remains in the property, there is a potential liability and potential cost. On the liability side, if there is a burglary or other type of intrusion, the tenant may claim the cause as a defective alarm system supplied by the property owner. If the alarm does not function properly or the tenant does not know how to use it, they will call for service. |
| min:Paint all cabinets (0/1) | 1.0 | 1500.0 | 1500 | |
| min:Paint external door (#) | 1.0 | 250.0 | 250 | Paint external door - Repaint an exterior door, filling dents as needed. Painting the door is necessary when we replace the current locks because the "footprint" of the new locks will not match the existing lock "footprint". |
| Paint interior (SF) | 816 | 1.85 | 1510 | Paint interior - We use a standard set of paint colors: Ceilings - flat white. Trim and doors - Swiss Coffee. Walls - light tan. |
| min:Horizontal blind (#) | 4.0 | 120.0 | 480 | |
| min:Vertical blind (#) | 1.0 | 140.0 | 140 | |
| Total | 22013 |
| Name | Quantity | Rate | Extended | Note |
|---|---|---|---|---|
| full:SS Kitchen Set (0/1) | 1.0 | 2400.0 | 2400 | Appliances - All appliance prices are for used appliances. Used appliances typically cost about 50% of the price of new appliances. Used appliances may have minor dings and dents, which is acceptable in a rental property. Used appliances typically have a three-month warranty. This includes the dishwasher, stove, refrigerator, and microwave. |
| full:Caulk (0/1) | 1.0 | 85.0 | 85 | Caulk - Caulk all bathrooms as needed. |
| full:Double sink top (#) | 1.0 | 1200.0 | 1200 | Single sink top - Granite vanity top, including under-mount sink and faucet. |
| full:Faucet (#) | 1.0 | 135.0 | 135 | |
| full:Replace sink (#) | 1.0 | 110.0 | 110 | |
| full:Single sink top (#) | 1.0 | 800.0 | 800 | Double sink top - Granite vanity top, including under-mount sinks and faucets. |
| full:Toilet seat (#) | 1.0 | 35.0 | 35 | |
| full:Tub drain ring (#) | 1.0 | 125.0 | 125 | |
| full:Exterior door lock (#) | 2.0 | 150.0 | 300 | Exterior door lock - Replace current lock and handle/knob with Kwikset SmartKey deadbolt and matching pass knob. |
| full:Glass door rollers (#) | 1.0 | 150.0 | 150 | Over time the rollers that support the sliding glass door wear down or flatten making the door difficult to open or close. Replacing the rollers corrects this problem. |
| full:Nickel door knobs (#) | 1.0 | 35.0 | 35 | Nickel door knobs - Replace the current (brass/old/inconsistent) knobs with brushed nickel knobs. |
| full:Landscape cleanup (#) | 4.0 | 100.0 | 400 | Landscape cleanup - One-time landscape cleanup, including tree/foliage trimming as needed. Also, verify that the irrigation is working and properly programmed and the battery replaced. |
| full:Remove Satellite dish (#) | 1.0 | 165.0 | 165 | We remove existing satellite dishes for two reasons. First, tenants who want satellite service often attempt to use the existing dish, which may not be compatible with their chosen service provider. By removing existing dishes, we avoid unnecessary service calls and potential complications. |
| full:Remove all screens (0/1) | 1.0 | 150.0 | 150 | Due to the climate of the Mojave Desert, windows are rarely opened. Because there is little to no standing water, flying insects like mosquitoes are rare. As a result, screens are not a necessity. We remove screens because they are easily damaged, and tenants will expect them to be replaced - an unnecessary cost. Therefore, we remove them to avoid future expenses. |
| Baseboards (Ft) | 256 | 3.0 | 768 | The quantity shown is derived from a formula and is only an estimate. During due diligence, the actual quantity needed will be determined. |
| Install LVP (SF) | 1165 | 7.0 | 8155 | LVP - Luxury Vinyl Plank - A very durable flooring we've had great success with. It has effectively replaced the use of tile because LVP is more durable. The quanty is derived from a formula and is only an estimate. During due diligence the quantity needed will be be measured. |
| Remove carpet or laminate (SF) | 816 | 1.0 | 816 | The quanty is derived from a formula and is only an estimate. During due diligence the quantity needed will be be measured. |
| Remove tile (SF) | 350 | 2.0 | 700 | The quanty is derived from a formula and is only an estimate. During due diligence the quantity needed will be be measured. |
| full:Goose neck faucet (0/1) | 1.0 | 220.0 | 220 | |
| full:Granite counters (0/1) | 1.0 | 3800.0 | 3800 | Granite or quartz - Occasionally, we can source quartz countertops at a cost similar to granite. Quartz is viewed as more luxurious. Consequently, if the price is comparable, we opt for quartz. This price typically includes an undermount sink and a gooseneck faucet. |
| full:Track light (0/1) | 1.0 | 200.0 | 200 | |
| full:Bath Light (#) | 2.0 | 65.0 | 130 | |
| full:Install wiring + ceiling fan (#) | 3.0 | 390.0 | 1170 | Install wiring for a ceiling fan and install the fan. |
| full:Cabinet/Drawer pulls (#) | 1.0 | 14.0 | 14 | Cabinet/Drawer pulls - Pulls make the cabinets look better and protect the cabinet surface. Pulls are especially important for painted cabinets. If people touch the painted cabinet edge to open/close the cabinet, the paint will chip and peel. If this occurs, the cabinets will need to be touched up or repainted. |
| full:Cost pad (#) | 17.0 | 500.0 | 8500 | Pad for unexpected items found during the inspection and small items. This amount may be removed or adjusted once inspections are complete and we have quotes for all work. |
| full:Janitorial (1) | 1.0 | 320.0 | 320 | Janitorial - Once the renovation is complete, the property will be cleaned, including interior window washing where feasible. |
| full:Junking budget (#) | 1.0 | 100.0 | 100 | Junking budget - Budget for removing debris left in the property after the close. The amount shown is a guess (a placeholder) until we receive the quote(s) from the appropriate vendor(s) after the property is vacant. If no debris is left, the cost will be removed. |
| full:Make ready (1) | 1.0 | 300.0 | 300 | Make ready - Replace all burnt and pigtail style bulbs, installing 4K light bulbs in all bathrooms, and replacing HVAC filters (price is subject to change depending on filter and bulb quantity) |
| full:Professional photos (1) | 1.0 | 120.0 | 120 | Professional photos - We will arrange for a real estate photographer to take the marketing photos when the renovation is complete. The cost will be $120. The photographer will bill separately at that time; the cost is included in the total to make you aware of this expense. |
| full:Remove alarm w paint (0/1) | 1.0 | 125.0 | 125 | Remove Alarm and sensors - If an alarm system remains in the property, there is a potential liability and potential cost. On the liability side, if there is a burglary or other type of intrusion, the tenant may claim the cause as a defective alarm system supplied by the property owner. If the alarm does not function properly or the tenant does not know how to use it, they will call for service. |
| full:Replace fireplace surround (0/1) | 1.0 | 585.0 | 585 | Remove existing fireplace surround tile if needed. Purchase and install fireplace surround |
| full:Paint Side gate (#) | 1.0 | 145.0 | 145 | |
| full:Paint all cabinets (0/1) | 1.0 | 1500.0 | 1500 | |
| full:Paint external door (#) | 1.0 | 250.0 | 250 | Paint external door - Repaint an exterior door, filling dents as needed. Painting the door is necessary when we replace the current locks because the "footprint" of the new locks will not match the existing lock "footprint". |
| Paint interior (SF) | 1165 | 1.85 | 2155 | Paint interior - We use a standard set of paint colors: Ceilings - flat white. Trim and doors - Swiss Coffee. Walls - light tan. |
| full:Paint shower or door trim (#) | 2.0 | 100.0 | 200 | |
| full:Horizontal blind (#) | 4.0 | 120.0 | 480 | |
| full:Vertical blind (#) | 1.0 | 140.0 | 140 | |
| Total | 36983 |
The following photos were uploaded by the listing agent. These images may or may not represent the property's current condition, so use them as a reference only. If included in this report, the video best represents the property's current state.
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