Investment Info:
Single-family residence buy & hold investment in Seattle.
Purchase price: $317,000
Cash invested: $90,000
1000ft2 waterfront condo in a great location
What made you interested in investing in this type of deal?
Loved the work that needed to be done, and the location is primo.
How did you find this deal and how did you negotiate it?
Knew the seller. They were stretched out too thin on their monthly expenses and need to unload this property. Seller financed through construction, then I refinanced with a conventional loan.
How did you finance this deal?
Conventional Loan
How did you add value to the deal?
Opened up the floor layout, updated bathroom, kitchen and all fixtures.
What was the outcome?
The rental rate increased nearly $500/month. The forced appreciation was 45K. The natural appreciation has been strong enough that we are still holding this property.
Lessons learned? Challenges?
The cash flow on this property isn't very great. Mostly because the market in Seattle is so inflated that the rental rates would need to be extremely high to generate good cash flow. But... I also didn't foresee 2 increases in HOA dues, ultimately resulting in a $250/month change to the cashflow. The property is still cash flow +, but for the amount of capital I've had to tie up in the property, I'd like to see a hire cashflow.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Donna Boisen, Agent for Keller Williams
