Phoenix Apartment Complex Remodel & Resale | P. J. Hussey

Hi, everyone. I’m Andrew Thruston here with Terry Kass. I wanted to show you guys some of the work we’ve.

Hi, everyone. I’m Andrew Thruston here with Terry Kass. I wanted to show you guys some of the work we’ve done recently out here in south Scottsdale. Terry, why don’t you tell us how you came into this property? Terry: I had a client 3 or 4 years ago who was looking for property. He was pretty much exclusively in Scottsdale. He looked on the market, I found him this property. It was in the area we wanted, but it was rough. At the time, it was okay. It was cash flowing. At the time, I did not feel that the current management company could handle managing it and rehabbing it. And I wasn’t happy with the way they were doing the management. So, I talked to the owner, and I told him I’d done a lot of business with Andrew. I was happy with him. He had managed a lot of properties for me. So, we got the go-ahead to start the rehab on this project. So, it was a complete gut. We took it down to the dirt. We re-did it, built it up, and now we’ve got this beautiful final project all done, 100% ready to rent. We already rented half the complex, and we basically just want to get it filled and cash flowing. Andrew: So, when we took this property down, literally, to bare walls, we’ve redone all the electrical, we’ve redone all the plumbing. Obviously, you see the beautiful cabinetry. The flooring. Top-to-bottom. New air conditioning. New ductwork. New bathrooms. There’s nothing that we didn’t do in this unit. Which is nice, because that’s what got us the rent we were looking for. One of the things that we did at this particular project was we got the city of Scottsdale involved, and we made sure we got all the appropriate permits to make sure that our client was satisfied and that this was done right for resale purposes. We wanted to make sure that, at the end of the day, our client could put this on the market and sell it, and not have any liability or pushback from a potential buyer. Terry: And I knew, as a broker, that when the time comes to sell it, I got to be able to tell that prospective buyer all of those things. Andrew: Absolutely. One of the other things that we did that was really nice was, when we looked at this area, we took into consideration that none of these older buildings have laundry inside of them. And so when we got into this particular project, we wanted to add laundry to the units. And so what we actually did is we saw-cut the floors in order to add laundry into these units, which I think when we did the math, added probably about $15,000 worth of value to each unit. Terry: Oh, yeah. It brings up value, brings up rental rates, and we didn’t put in small stackables. We put in full-size washer and dryer, premium brand in here. Andrew: One of the other things that we did was we actually cut into the master bedroom. We opened up the wall and added a back patio for every single unit. One of the other things that we did that was a tremendous value add was the hallways in the one-bedroom units that we had here had a large master closet, and there was a tremendously under-utilized exterior storage space. So, when we came in here, we had our architect come in and design this unit, and we totally blew the walls out of the one-bedroom units, adding a closet into the one-bedroom, allowing us to build the laundry room into those units. We shortened the exterior space quite a bit, but we didn’t need that exterior storage because we added the full-size pantry closets and the linen closets into the laundry, which was a huge benefit. Terry: Right. And so the other things that people don’t notice is that these are full, 100% wood cabinets. These things will last forever. These are premium Whirlpool stainless steel appliances. Granite countertops, which is an upgrade. Tile backs, the tile flooring. Andrew: Yeah, full porcelain tile. Wood plank tiles throughout every unit. Beautiful. When we came into these units, the kitchens were closed off. We had an engineer come in and actually evaluate the structural integrity of the buildings to ensure that we didn’t run into the issues with the buyers when they decide to put it on the market, whatever time that may be. But, we actually opened up the entire space into the kitchen, allowing for an open floor plan, which has been a tremendous benefit. Terry: Yeah, everything we’ve got has to be an open floor plan, if you can do it. That is what is “in” right now. For a renter and a buyer. My owner is going to have great cash flow, minimal maintenance, minimal expenses, and we’re going to get better quality renters that will probably stay a lot longer, with a nice security deposit. And we’ve helped out the area. The owner has two other buildings, one down the street. PJ Hussey is going to be doing the renovation on those, including the six other projects PJ Hussey is doing for me right now. And, probably, minimum another 3 or 4 that we’re in the process of looking at, getting financing for, and arranging for PJ Hussey to do the rehab and the management on those. I think Andrew is the best there is. He does a good job, and we’re just going to keep moving forward, because that’s what the trend of Phoenix area is right now. If you’re looking for a company to come in and renovate your properties, manage your properties, and take care of your investments, give us a call.

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