Panel vintageSeptember 1, 202653 synthetic assetsDemonstration data — no real listings, no addresses
Parcel
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WMS-03

West Mesa · Mesa, AZ 85201 · Fourplex · 4 doors

ActiveFourplexBuilt 1969
Asking
$552,000
Est. rent / mo
$5,320
Est. cap rate
7.33%
Est. cash-on-cash
5.42%
Est. DSCR
1.26
Rent / price
0.964%
$ / sq ft
$182
Est. cash flow / mo
$685

At the baseline set: 25% down, 6.75%, 30-year amortisation. Estimates.

Representative stock photograph — two-storey walk-up elevation with an exterior stair. Not a photograph of any asset in this panel.
Representative stock photograph — renovated kitchen with quartz counters and vinyl plank flooring. Not a photograph of any asset in this panel.
Representative stock photograph — vacant living area with vinyl plank flooring and a slider to the patio. Not a photograph of any asset in this panel.
Representative stock photograph — renovated bathroom with a tiled tub surround. Not a photograph of any asset in this panel.
Representative stock photograph — exterior condenser units on a gravel pad. Not a photograph of any asset in this panel.

Representative stock photography of Phoenix-metro residential product. These are not photographs of this asset — there is no such asset. This panel publishes a code and a submarket and nothing finer, because a plausible house number on a real street is a real house, and putting an invented price under a photograph of one is the thing this whole demonstration exists to avoid.

The read

One of four doors is vacant at list — the in-place figure below reflects three occupied units, while the underwriting model runs the stabilised case. Both are shown.

  • Four 2/1 units
  • One unit vacant at list
  • Owner-paid water
  • Coin laundry

Facts

Physical
Property typeFourplex
Units4
Bedrooms / bathrooms4 / 4
Living area3,040 sq ft
Lot10,890 sq ft
Year built1969 (57 yrs)
Stories1
ParkingOpen, 6 spaces
Panel codeWMS-03
LocationWest Mesa, Mesa 85201
Carry — estimated
Property tax / yr$2,870
Insurance / yr$2,790
HOA / moNone
Other fixed / yr$1,900
Total est. operating / yr$19,562
HVAC installed2015
Roof installed2016
Water providerCity of Mesa
FEMA flood zoneZone X

Underwrite it

Every figure below recomputes as you move an input. Nothing is rounded until it is printed, and operating expenses never include debt service — that separation is what makes the cap rate a property of the building and the cash-on-cash a property of your deal. All outputs are estimates.

Purchase & financing
Income
Operating expenses

Monthly cash flow

+$685

after debt service, before tax

Cap rate

7.33%

NOI ÷ purchase price

Cash-on-cash

5.42%

cash flow ÷ cash invested

DSCR

1.26

NOI ÷ annual debt service

Where the gross rent goes

  • Vacancy$3,830
  • Operating$19,562
  • Debt service$32,222
  • Cash flow$8,225
Annual income statement — estimated
Gross scheduled income$63,840
Less vacancy & credit loss−$3,830
Effective gross income$60,010
Less fixed operating−$7,560
Less variable operating−$12,002
Net operating income$40,448
Less annual debt service−$32,222
Pre-tax cash flow$8,225
Loan amount$414,000
Monthly principal & interest$2,685
Cash invested$151,800
Operating expense ratio32.6%
Break-even occupancy81.1%
Gross rent multiplier8.6
Rent-to-price ratio0.964%

Estimated figures produced by a model from the assumptions on the left. Not an offer, an appraisal, a loan quote or investment advice. Taxes, insurance and operating expenses are estimates; verify each before you commit capital.

What it would have to cost

The asking price against three solved thresholds

Rent and every operating line held exactly as stated; only the purchase price moves. Each mark is the price that solves one condition. Nothing here is a price history: this asset has none, and inventing one would be the easiest dishonest thing on the page.

Solved prices, holding rent and operating expenses fixed. At the asking price this asset computes to a 7.33% cap rate, 5.42% cash-on-cash and a DSCR of 1.26.
ConditionPricevs askWhat it means
Current asking price$552,000—The number on the panel. Everything below is measured against it.
DSCR 1.00$693,000+25.5%net operating income exactly covers the mortgage; cash flow is zero
Leverage turns (5.84%)$693,000+25.5%above this cap rate the loan adds to the return instead of subtracting from it

Asking price carried on the submarket index

The current asking price projected backwards on the West Mesa median-price index. Arithmetic on two synthetic series — not an appraisal, not a price history and not a record of any transaction.

Comparables

Rent is compared per unit, which is the only fair basis across a house and a fourplex. The subject sits 10.4% below the median of its five closest comparables.

Monthly rent per unit

Drawn from the panel itself, ranked by product family, unit size, bedroom count and proximity at the resolution this data has: same submarket, then same city.

  • WMS-03Subjectsubject · 4/4 · 760 sq ft/unit
    $1,330
  • WMS-04Same submarket · 2/2 · 860 sq ft/unit
    $1,490
  • PRS-03Elsewhere in metro · 4/4 · 780 sq ft/unit
    $1,370
  • ALH-05Elsewhere in metro · 4/4 · 820 sq ft/unit
    $1,485
  • GLC-04Elsewhere in metro · 4/4 · 880 sq ft/unit
    $1,545
  • ALH-03Elsewhere in metro · 4/4 · 610 sq ft/unit
    $1,205
Table
Monthly rent per unit — full data. Drawn from the panel itself, ranked by product family, unit size, bedroom count and proximity at the resolution this data has: same submarket, then same city.
ComparableDetailRent / unit / mo
WMS-03 (subject)subject · 4/4 · 760 sq ft/unit$1,330
WMS-04Same submarket · 2/2 · 860 sq ft/unit$1,490
PRS-03Elsewhere in metro · 4/4 · 780 sq ft/unit$1,370
ALH-05Elsewhere in metro · 4/4 · 820 sq ft/unit$1,485
GLC-04Elsewhere in metro · 4/4 · 880 sq ft/unit$1,545
ALH-03Elsewhere in metro · 4/4 · 610 sq ft/unit$1,205
Price comparables — 4 nearest assets of the same product type
AssetSubmarketProximityAskSq ft$ / sq ft
WMS-03 SubjectWest Mesa—$552,0003,040$182
PRS-03Peoria SouthElsewhere in metro$612,0003,120$196
GLC-04Glendale CentralElsewhere in metro$706,0003,520$201
ALH-05AlhambraElsewhere in metro$674,0003,280$205
ALH-03AlhambraElsewhere in metro$512,0002,440$210

Sensitivity

What a five-percent move in price or fifty basis points on the rate does to the return. Computed at the baseline assumption set, not at whatever you have set the calculator to — it is a fixed reference.

Sensitivity — cash-on-cash by price and rate

Every other assumption held at the baseline set. A fixed reference, not tied to the calculator above. Estimates.

Cash-on-cash return by purchase price and interest rate
Price \ Rate5.75%6.25%6.75%7.25%7.75%
$508,000−8%9.9%8.8%7.7%6.6%5.5%
$530,000−4%8.7%7.6%6.5%5.4%4.3%
$552,000ask7.5%6.5%5.4%4.3%3.2%
$574,000+4%6.5%5.5%4.4%3.3%2.2%
$596,000+8%5.6%4.5%3.5%2.4%1.2%

Cash-on-cash1.2% → 9.9%

What to check before you commit

  • HVAC

    Condenser installed 2015, 11 years old. Inside normal service life for this climate, so the CapEx reserve carries it rather than a year-one line item.

  • Roof

    Roof dates to 2016, 10 years old — inside the window most carriers will write without a surcharge.

  • Flood

    FEMA Zone X. Outside the mapped special flood hazard area; a lender will not require separate flood coverage.

  • Water allocation

    Served by City of Mesa. Long-run Colorado River and Central Arizona Project allocation is a genuine risk to price on the metro’s growth edges over a 10-to-20 year hold. It is a discount-rate question, not a next-quarter question.

  • No HOA

    No association. Nothing constrains rental use at the community level, and there is no fixed monthly charge in the expense line.