Cash flow long term

[Charles Perkins]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $190,000
Cash invested: $190,000

SFR purchased as residence and converted to rental after 5 years. Property has a nice view in a middle income suburban area. Home can very easily be converted to duplex.

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

Location near freeways without the noise. Near SeaTac International airport. Nice view, walking distance to bus, schools, shopping. Close to Seattle & Eastside providing good location for those working in those areas

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

Diligent search over several months and word of mouth.

How did you finance this deal?

Bank loan. That was refinanced later to very low fixed interest rate and is now fully paid.

How did you add value to the deal?

Fully finished the basement area as mother-in-law unit. Upgraded windows, landscape work and made two separate dwelling units.

What was the outcome?

Property cash flows very well and has become an excellent tax shield with my other properties.

Lessons learned? Challenges?

Good screening processes are a must.