Investment Property Analysis
A Comparative Review of Two Hampstead, NC Opportunities
At a Glance
This section provides a direct comparison of the core financial metrics for each property, allowing for a quick and effective evaluation of their fundamental differences.
78 Violetear Ridge (4-Bed)
Purchase Price | $455,000 |
Total Cash Investment | $124,850 |
Monthly Rent (Yr 1) | $2,900 |
Net Operating Income (Yr 1) | $18,192 |
Pre-Tax Cash Flow (Yr 1) | ($9,780) |
Cap Rate (Yr 1) | 4.00% |
10-Yr Avg CoC Return | 6.50% |
10-Year IRR | 12.60% |
634 Aurora Place (3-Bed)
Purchase Price | $410,000 |
Total Cash Investment | $112,700 |
Monthly Rent (Yr 1) | $2,600 |
Net Operating Income (Yr 1) | $17,588 |
Pre-Tax Cash Flow (Yr 1) | ($7,624) |
Cap Rate (Yr 1) | 4.29% |
10-Yr Avg CoC Return | 5.80% |
10-Year IRR | 12.30% |
10-Year Financial Deep Dive
This section provides interactive charts to visualize the long-term financial performance of both properties. Hover over the charts to explore year-by-year data and understand the trends in cash flow and overall profitability.
Strategic Considerations & Recommendation
This final section synthesizes the analysis into a clear recommendation based on investor priorities. While both are strong assets, they cater to different investment strategies.
78 Violetear Ridge: Maximize Returns
This property is the ideal choice for an investor whose primary goal is to **maximize long-term cash-on-cash returns**. While it requires a higher initial cash investment, its superior 4-bedroom configuration is projected to generate stronger absolute income, leading to faster growth in returns over the investment horizon.
634 Aurora Place: Lower Entry & Efficiency
This is the more suitable option for an investor prioritizing a **lower initial capital outlay** and a more efficient use of capital (higher Cap Rate). It provides access to the same premium market for over $12,000 less in cash, while delivering a nearly identical level of overall long-term profitability (IRR).
Final Conclusion
Both properties are sound investments poised to benefit from the significant economic growth in the Hampstead area. The decision hinges on the investor's personal capital position and return preference. **Violetear Ridge offers higher cash-on-cash returns**, while **Aurora Place provides a more accessible entry point with excellent underlying value.**