How We Added $650k of Value to a 6-Plex in Scottsdale, AZ

[Elijah Brown]

I'm extremely proud to present this case study of a 6-plex I recently renovated in Scottsdale, AZ. It is rare that renovations go smoothly and turn out better than imagined, but we emerged with a big win. This project was completed two months ahead of schedule and looks incredible!

The Acquisition

We acquired this property in June 2022 (along with a duplex next door) for our GoldHawk Renovation Fund III, a 17-unit portfolio. We sourced the property off-market from a distressed seller by utilizing our established broker relationships in Phoenix, AZ. This was one of the worst properties in a Class "A" location.

Purchase Price: $1.75M ($292k/door)

Unit Mix: (4) two bedrooms; (2) one bedrooms

Average Rent: $550/month | all tenants on month-to-month

Before Photos:

The Renovation

Our general contractor provided us with a detailed scope of work before we purchased the property. They were able to begin demolition immediately after the close of escrow and removal of the month-to-month tenants.

Renovation Budget: $385k ($64k/door)

Progress Photos:

Our target completion date was January 2023, but our contractors surprised us with an early finish in November 2022!

Final Product

Target Rents: $1,650/month (200% increase or 3x the previous rent)

Property Value: $2.4M (37% increase)

I want to thank our investors, lender, contractor, broker, and everyone else who made this project possible. We're good at sourcing and executing deals, but it truly takes a team effort to fully capitalize on opportunities like this.