Peter Keane-Rivera is an engineer who also invests in real estate in the Seattle area. In December 2024, he bought a 100-year-old house for $630,000, which he transformed from a five-bedroom home into a nine-bedroom rental. This renovation allowed him to make about $2,500 a month in profit. To finance the purchase, he made a small down payment of 5%, which was about $32,000, using a conventional loan. He initially had a high interest rate of 7.75%, but after a year, he refinanced to a lower rate of 5.375%. This change significantly improved his cash flow. Keane-Rivera spent around $150,000 on renovations, which included finishing the basement and adding more bedrooms and bathrooms. He funded part of this renovation by taking a loan from his retirement savings. Although he faced unexpected costs, such as replacing old wiring, he was able to increase the property's value to approximately $875,000 after the renovations. Currently, he rents out the nine rooms for a total of about $8,876 a month. After covering his expenses, he ends up with around $2,500 in cash flow monthly. Managing the property himself, he aims to provide affordable housing while also making a profit in a challenging real estate market.
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