Two-Bedroom Residential Income
For Sale
$359,990
Pending
8649 E ROYAL PALM Road 232, Scottsdale, AZ 85258
Open-layout residence with quartz countertops, stainless-steel appliances, and a spacious balcony with storage.
Property Size1,000 SF
Days on Market239
Property Features for 8649 E ROYAL PALM Road 232
General Information
Standard status
Pending
Size
1,000 SF
Property subtype
Apartment
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$920
Building Details
Building Size
1,000 SF
Year Built
1980
Listing Agency:
HomeSmart
(623) 340-2723
Listed By:
Jason Bunting
(623) 340-2723
Source:
Alexiabertsatos
Added: Dec 26, 2025
Changed: Aug 21
Last Checked: Aug 21 at 11:35AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of HomeSmart
Investment Insights
Based on property information with market context.
This two-bedroom, two-bath residence, built in 1980, offers an open interior arrangement with an eat-in kitchen and a large primary suite. Kitchen finishes include quartz countertops, wood cabinetry, a tile backsplash, recessed lighting, and stainless-steel appliances. The primary suite includes a walk-in closet and an ensuite bathroom with dual sinks. A spacious balcony provides outdoor space and additional storage.
The property is near Old Town Scottsdale dining, shopping, and outdoor recreation. Its residential layout combines defined bedroom accommodations with practical kitchen, bath, and storage features.
The property is near Old Town Scottsdale dining, shopping, and outdoor recreation. Its residential layout combines defined bedroom accommodations with practical kitchen, bath, and storage features.
Key Highlights
- Two‑bedroom, two‑bath residence built in 1980
- Eat‑in kitchen with quartz countertops and stainless‑steel appliances
- Wood cabinetry, tile backsplash, and recessed kitchen lighting
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$11,571
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.21%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$231,420
$231.4K
Cap Rate 7%
$165,300
$165.3K
Cap Rate 9%
$128,567
$128.6K
Market Conditions
NOI Build-Up for 1,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$22.0K $21.96/SF
− Vacancy
−$922 −$0.92/SF
EGI
$21.0K $21.04/SF
− OpEx
−$9.5K −$9.47/SF
NOI
$11.6K $11.57/SF
Area
Scottsdale, AZ
Vacancy
4.20%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$231,420
Cap Rate 7%
$165,300
Cap Rate 9%
$128,567
Alternative Uses
Best Use
Apartment 5plus
$165.3K
$144.6K – $192.9K
NOI $11,571 @ 7.0% cap · market cap 3.21%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$328.3K
$287.2K – $383.0K
NOI $22,979 @ 7.0% cap · market cap 6.38%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,951
Businesses Nearby
Explore this area
Business Placement
Demographics for 85258, AZ
25,203
Population
15,566
Households
1.6
Avg Household Size
55
Median Age
63%
College-Educated
99%
High-School Grad
10.3 sq mi
ZIP Area
2,447
Density / Sq Mi
$105,171
Median Household Income
$68,184
Median Earnings
$1,945
Median Rent
$744,600
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Open-layout residence with quartz countertops, stainless-steel appliances, and a spacious balcony with storage.
Where is this residential income property located?
The property is located at 8649 E ROYAL PALM Road 232 Scottsdale, AZ.
What is the asking price?
The asking price for this property is $359,990.
What are key features of this property?
This property features: Two‑bedroom, two‑bath residence built in 1980; Eat‑in kitchen with quartz countertops and stainless‑steel appliances; Wood cabinetry, tile backsplash, and recessed kitchen lighting
