Quality of Life Owner-Occ to Cashflowing Rental

[Liam Naughton]

Investment Info:

Single-family residence buy & hold investment in Edmonds.

Purchase price: $725,000
Cash invested: $80,000

Helped my mom purchase this house as an owner-occupied property.
She lived there until she moved to Hawaii and now runs the asset as an MTR.
It's currently on a 3-month lease with a 10-month lease lined up for 2023.

What made you interested in investing in this type of deal?

My mom wanted to live in a waterfront property.

How did you find this deal and how did you negotiate it?

This was on the NWMLS and we purchased it at list price without any competition.

How did you finance this deal?

Conventional financing 10% down

How did you add value to the deal?

It was furnished while my mom was living there and is now being rented out fully furnished.

What was the outcome?

Cashflowing around $250/mo on a 3-month lease right now. Same projected return for the 10-month lease coming up.

Lessons learned? Challenges?

Careful how many stairs you buy, this one was 48 stairs to get to the front door. Makes moving things hard and shrinks your renter pool.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yours truly for agency representation and People's Bank Edmonds for financing.