SFH Rental In Everett, WA

[Aaron Flake]

Investment Info:

Single-family residence buy & hold investment in Everett.

Purchase price: $305,000
Cash invested: $15,000

I purchased this 5 bedroom 2 bathroom rental after setting up a HELOC on my primary residence. Purchase price was 305k with an additional 15k for renovations which included new flooring, kitchen, and a bathroom. After getting it rented we did a cash out refinance(appraised at 455k) paying back my HELOC.

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

The purchase price and cash flow potential.

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

My Dad heard about it through a friend

How did you finance this deal?

200k from my HELOC. 105k from my Dad who is also a real estate investor.

How did you add value to the deal?

Renovated the house. New carpet, luxury vinyl plank flooring, new kitchen appliances, cabinets bought off craigslist, granite counter tops, lighting fixtures, remodeled bathroom with granite countertop and added shower stall.

What was the outcome?

We had it rented out for $2300/month shortly after the renovating was complete. Then did a cash out refinance getting back our entire investment after it appraised for 455k.

Lessons learned? Challenges?

This was my first time refinancing so I learned a lot about the process and everything the lender needed. I also learned that I hate doing drywall! I wanted to learn though so I'm not mad about it.

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

No agents, but I did work with Myles Martinson who was my mortgage broker during the refinance. Him and his team did an excellent job.