Recently Funded Fix And Flip Loan In Scottsdale, Arizona

Loan Scenario:

This fix-and-flip project involves a 1500 square foot condo in Scottsdale, Arizona. The property was purchased for $880,000, with a comprehensive rehab budget of $175,000. The total loan amount secured for this project is $949,500, resulting in a Loan-to-Cost (LTC) ratio of 90% and a Loan-to-After Repair Value (LTARV) of 68%.

The after-repair value (ARV) of the property is projected at $1,400,000, indicating significant potential for return on investment. The scope of work includes extensive renovations focused on modernizing the interior, which comprises architectural design updates, metal framing, plumbing, and the installation of new appliances.

Specific improvements will include interior design modifications, drywall installation, new HVAC systems, and the complete renovation of bathrooms, including new vanities and fixtures. The project will also address aesthetic updates, such as fresh painting and the replacement of flooring throughout the unit, enhancing both functionality and visual appeal.

Scottsdale’s real estate market is known for its strong demand, particularly in the luxury condo sector. With its favorable climate, vibrant lifestyle, and proximity to outdoor recreational activities, the area has seen a steady increase in property values. Recent market reports indicate a 5.2% increase in home values year-over-year, making this an opportune time for the investor to capitalize on the potential appreciation.

The experienced investor will utilize the financing to cover all hard costs associated with these enhancements, ensuring a thorough transformation of the property. By executing these strategic renovations, the project aims to maximize returns while significantly enhancing the overall value and appeal of the condo in the competitive Scottsdale real estate market.