Residential Income Property with
For Sale
$355,000
8651 E Royal Palm Rd #231, Scottsdale, AZ 85258
Open-plan residence with vaulted ceilings, skylight, private patios, and access to extensive community amenities.
Property Size1,116 SF
Price / SF$318.10
Days on Market49
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
private patios
pool
heated spa
tennis
pickleball
basketball courts
fitness studio
clubhouse
BBQ grilling area
walking trails
biking trails
Building Details
Year Built
1984
Listing Agency:
1St Dream Realty
(602) 909-6513
Listed By:
Brandon Howe Team
(602) 909-6513
Source:
Howerealtygroup
Added: Jul 13
Changed: Aug 27
Last Checked: Aug 29 at 8:53AM
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 1St Dream Realty
Investment Insights
Based on property information with market context.
This 1,116-square-foot Scottsdale condo includes two bedrooms and two bathrooms within an open layout accented by vaulted ceilings and a skylight. Two private patios extend from the living area and primary suite, with views toward landscaped greenbelts and the community pool. Built in 1984, the residence combines indoor living space with outdoor areas suited to everyday use or seasonal occupancy.
Community amenities include multiple pools, a heated spa, tennis and pickleball courts, basketball courts, a fitness studio, resident clubhouse, BBQ grilling area, and walking and biking trails. The property permits rentals with a 30-day minimum. Its McCormick Ranch setting places it near Talking Stick Resort, Salt River Fields, Old Town Scottsdale, golf, dining, shopping, and Loop 101.
Community amenities include multiple pools, a heated spa, tennis and pickleball courts, basketball courts, a fitness studio, resident clubhouse, BBQ grilling area, and walking and biking trails. The property permits rentals with a 30-day minimum. Its McCormick Ranch setting places it near Talking Stick Resort, Salt River Fields, Old Town Scottsdale, golf, dining, shopping, and Loop 101.
Key Highlights
- Two‑bedroom, two‑bathroom condo with 1,116 SF of interior space
- Two private patios connected to the living area and primary suite
- Vaulted ceilings and skylight contribute to the open interior layout
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
3.64%
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 3.64%
Second Best
—
—
no second resolved use
Theoretical Best
Retail
$366.4K
$320.6K – $427.4K
NOI $25,645 @ 7.0% cap · market cap 7.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Open-plan residence with vaulted ceilings, skylight, private patios, and access to extensive 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 $355,000.
What are key features of this property?
This property features: Two‑bedroom, two‑bathroom condo with 1,116 SF of interior space; Two private patios connected to the living area and primary suite; Vaulted ceilings and skylight contribute to the open interior layout
