2318 E Cambridge Ave

The deal

2318 E Cambridge Ave is a 3 bed, 2 bath block ranch in Phoenix's Coronado neighborhood, one of the few central districts where renovated 1950s homes are still trading above $400 a square foot. I closed at $285,000, about $22,000 under the three nearest renovated comps on a per-square-foot basis, because the seller needed a 14-day cash close and the house shows its age.

The plan

The structure, roof (2019) and HVAC (2021) are sound. The money goes to what buyers see: a full kitchen with shaker cabinets and quartz, both bathrooms retiled, refinished original hardwoods, new interior and exterior paint, and a low-water front yard. Rehab budget is $48,000 with a 10% contingency, scheduled for 11 weeks with a contractor I have used on four prior Coronado flips.

The exit

Target list price is $365,000 in month 5, with a 7-month total hold including sale and closing. After selling costs of roughly 6% and holding costs of about $6,500, the projected net is in the $18,000 to $26,000 range. Investors receive their pro rata share of net proceeds at closing. If the market softens, the fallback is to rent at $2,450 a month, which covers carry at today's rates.