Upgraded Residential Income
For Sale
$349,000
8651 E Royal Palm Rd #231, Scottsdale, AZ 85258
Upper-level residence with refreshed kitchen and bathrooms, vaulted ceilings, skylights, and access to community amenities.
Property Size1,116 SF
Price / SF$312.72
Days on Market28
Property Features for 8651 E Royal Palm Rd #231
General Information
Standard status
Active
Size
1,116 SF
Property subtype
Multi-Family
Additional Details
Highway Access
Yes
Multifamily Units
1
Amenities
pool
spa
tennis courts
Building Details
Year Built
1984
Listing Agency:
Russ Lyon Sotheby's International Realty
(928) 227-2435
Listed By:
Brandon Howe Team
(602) 909-6513
Source:
Howerealtygroup
Added: Aug 15
Changed: Sep 10
Last Checked: Sep 10 at 6:06AM
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 Russ Lyon Sotheby's International Realty
Investment Insights
Based on property information with market context.
This upstairs Villa De Vallarta residence is configured with 2 bedrooms and 2 bathrooms. The split-bedroom layout places the sleeping areas on opposite sides of a formal dining room, which can also function as a home office. Interior improvements include an updated kitchen and bathrooms, vaulted ceilings, skylights in the living room, upgraded shutters, and updated fixtures. A private patio overlooks the community pool and spa.
Community amenities include 2 pools and tennis courts. The property is in McCormick Ranch, with access to Loop 101, Salt River Fields, Pavilions shopping, dining, and entertainment, along with other Scottsdale destinations. Built in 1984, the residence offers a combination of private outdoor space, recreational amenities, and a separated interior layout.
Community amenities include 2 pools and tennis courts. The property is in McCormick Ranch, with access to Loop 101, Salt River Fields, Pavilions shopping, dining, and entertainment, along with other Scottsdale destinations. Built in 1984, the residence offers a combination of private outdoor space, recreational amenities, and a separated interior layout.
Key Highlights
- 2bed / 2bath upstairs Villa De Vallarta unit
- Upgraded kitchen and bathrooms with vaulted ceilings and living‑room skylights
- Split floorplan with formal dining room that can serve as a home office
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
$12,913
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
3.70%
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%
$258,260
$258.3K
Cap Rate 7%
$184,471
$184.5K
Cap Rate 9%
$143,478
$143.5K
Market Conditions
NOI Build-Up for 1,116 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
$24.5K $21.96/SF
− Vacancy
−$1.0K −$0.92/SF
EGI
$23.5K $21.04/SF
− OpEx
−$10.6K −$9.47/SF
NOI
$12.9K $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%
$258,260
Cap Rate 7%
$184,471
Cap Rate 9%
$143,478
Alternative Uses
Best Use
Apartment 5plus
$184.5K
$161.4K – $215.2K
NOI $12,913 @ 7.0% cap · market cap 3.70%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$366.4K
$320.6K – $427.4K
NOI $25,645 @ 7.0% cap · market cap 7.35%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Residential units
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
2,205
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
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Frequently Asked Questions
What type of property is this?
Residential income property - Upper-level residence with refreshed kitchen and bathrooms, vaulted ceilings, skylights, and access to community amenities.
Where is this residential income property located?
The property is located at 8651 E Royal Palm Rd #231 Scottsdale, AZ.
What is the asking price?
The asking price for this property is $349,000.
What are key features of this property?
This property features: 2bed / 2bath upstairs Villa De Vallarta unit; Upgraded kitchen and bathrooms with vaulted ceilings and living‑room skylights; Split floorplan with formal dining room that can serve as a home office
