Purchase Cost: $310,200

Renovation Cost: $31,000

Total Cost: $341,200

Strategy: Cosmetic Renovation/Ground-up Development

This project targets a 10,000-square-foot lot with a strategic long-term development plan. The lot includes a 700-square-foot home, remodeled in 2024 as Phase One to boost rental income, though it has been stabilized below market rent since Q1 2022. Our vision includes constructing a new main home on the lot, transforming the existing unit into an Accessory Dwelling Unit (ADU). Phase Two, slated for 2025, will initiate once additional equity is accrued. Upon completion, the dual homes will significantly increase cash flow, maximizing the property's long-term profitability and valuation. 

We plan to develop an additional home on the lot, with nearby comps selling in the high $750,000s, ensuring substantial value creation and a strong equity cushion. This strategic development will significantly enhance the property's market position. In the medium term, the property will be leased to long-term tenants, optimizing cash flow from the existing a home. This approach not only secures consistent revenue but also positions the asset for significant appreciation and long-term financial returns.

The Loma Linda neighborhood in Phoenix is a highly coveted market, known for its central location and vibrant community atmosphere, just steps from the prestigious Biltmore district. The real estate landscape here is robust, featuring a blend of well-preserved historic homes and modern renovations that appeal to both families and young professionals. Its proximity to top schools, premier dining, retail options, and major highways further strengthens its market position. Loma Linda has experienced steady property value appreciation, making it a prime target for both discerning homeowners and savvy investors.

While the long-term goal was to secure a stable rental income, we successfully stabilized the property with a long-term tenant. 

Our current strategy focuses on maintaining stability with a long-term tenant who has been in place since 2024, previously rented below market. This approach aligns with our goal of ensuring consistent rental income and preserving the property's value. However, we are also exploring options to maximize cash flow, including transitioning to a short-term or mid-term rental model. These alternative strategies would enable us to capitalize on the property's prime location, attracting a broader range of tenants and potentially increasing overall cash flow.