Purchase Cost: $260,000

Renovation Cost: $90,000

Total Cost: $350,000

Strategy: Value-add

This Biltmore, Phoenix property was a prime value-add opportunity. Through a comprehensive renovation, we transformed it into a versatile space suitable for multiple uses, including as a home, business, or Airbnb. Its prime location attracted various tenants, from long-term renters to short-term guests. We successfully stabilized the property with a long-term tenant who operates a piano lesson business, maximizing the space in this high-demand area. With its strategic location and design, the property is positioned for sustained rental income and future appreciation.

Purchased in 2018 with the intent to hold long-term, this property remains a key asset in our portfolio, as it is currently owned outright with no debt. The strategic renovations have significantly increased its value, providing us with strong equity in a prime location. While our initial plan was to keep the property without leveraging debt, we are considering the possibility of refinancing to capitalize on the substantial equity we've created. This would allow us to unlock additional capital for further investments while maintaining the property's strong income potential and long-term appreciation prospects.

The Biltmore area of Phoenix is a highly sought-after neighborhood, known for its upscale residential communities, luxury hotels, and premier shopping. With strong demand and limited supply, property values here consistently appreciate. The area attracts affluent professionals and business travelers due to its central location, proximity to downtown, and access to amenities like the Arizona Biltmore resort. The real estate market is characterized by high-end homes and condominiums, offering strong rental demand and long-term appreciation potential in one of Phoenix's most prestigious areas.

While the long-term goal was to secure a stable rental income, we successfully stabilized the property with a long-term tenant. The tenant operates a piano lesson business from the property, effectively utilizing the space in a high-demand area of Phoenix.

Our exit strategy for the property is designed to maximize returns while maintaining flexibility. With significant equity created through renovations and the prime Biltmore location, we have the option to refinance, allowing us to access the increased value for further investments while retaining ownership. This enables continued benefits from the property’s strong rental income and appreciation potential. Alternatively, if market conditions are favorable, selling the property could provide a substantial return on investment. This dual approach ensures we can capitalize on the best available opportunities.