Purchase Cost: $200,000

Renovation Cost: $200,000

Total Cost: $400,000

Strategy: Re-construction 

This project involved a heavy reconstruction plan aimed at maximizing equity. We began by tearing down the interior walls and roof, leaving only the exterior walls intact, and then expanded the property by adding square footage. New foundations, framing, and roofing were installed, along with modern fixtures and finishes throughout the interior. This extensive renovation has significantly increased the property's value, positioning it as a high-potential asset in the market and allowing us to stabilize it at top-of-market rents.

Alvarado Manor, in the heart of Phoenix, is situated in a highly desirable submarket known for its historic charm and proximity to the city’s cultural and economic hubs. Property values in the area have seen significant appreciation, with recent comps exceeding $1 million. On a 12,000-square-foot lot, we plan to add an Accessory Dwelling Unit (ADU) to generate additional rental income. As Phoenix continues to thrive, Alvarado Manor is well-positioned for ongoing appreciation and increased revenue potential.

Alvarado Manor is located in a highly desirable Phoenix neighborhood known for its historic charm and family-friendly atmosphere. The area draws families with its top-rated schools, parks, and close-knit community. The neighborhood features a blend of beautifully preserved historic homes and modernized properties, appealing to those who value both character and convenience. With proximity to cultural and economic hubs, as well as easy access to shopping, Alvarado Manor is ideal for families seeking a vibrant, safe, and welcoming community. Strong demand has also driven significant property value appreciation, making it a prime area for long-term investment.

The ideal tenant for Alvarado Manor is a family or professional couple seeking a long-term rental in a vibrant, family-friendly neighborhood. The property, fully stabilized at market rent since Q2 2023, offers modernized living spaces within a historically charming setting, making it attractive to those who appreciate both character and contemporary comforts. We targeted tenants who were looking for a stable, long-term residence where they can thrive.

In Q4 2022, we leveraged the low interest rates environment to refinance the property, tapping into equity. The property is now fully stabilized, with rental income covering the mortgage and generating positive cash flow. We are maintaining conservative leverage, keeping it below 65% LTV to ensure financial stability. Our long-term strategy is to hold the property, capitalizing on its strong rental performance and prime location. Additionally, we plan to enhance value by adding an Accessory Dwelling Unit (ADU), further increasing rental income and ensuring sustained profitability and future appreciation.