Investor finances Seattle-area rental with 5% down, generates $2,500 monthly cash flow

Key facts

• Peter Keane-Rivera bought a 100-year-old, 3,900-square-foot house in Kent, Washington, for $630,000.
• He financed the purchase with a 5% down payment, approximately $32,000.
• The property was converted into a nine-bedroom rental generating about $8,876 in monthly rent.
• The estimated monthly cash flow after expenses is approximately $2,500.
• Renovation costs for the property totaled about $150,000.
• Keane-Rivera's initial mortgage was $598,000 at 7.75%, refinanced to 5.375%.

Part-time real estate investor Peter Keane-Rivera has converted a century-old house in Kent, Washington, into a nine-bedroom rental property that generates approximately $2,500 in monthly cash flow. Keane-Rivera, who also works as an engineer, purchased the 3,900-square-foot home in December 2024 for $630,000, a negotiated price down from $665,000.

He financed the acquisition with a 5% down payment, about $32,000, and an initial loan of $598,000 at a 7.75% interest rate. Keane-Rivera strategically chose a lower down payment to preserve capital for renovations, which ultimately cost around $150,000, exceeding his budget. He also took out a $50,000 loan from his 401(k) to fund the remodel.

After completing renovations, which included finishing the basement to add three bedrooms and converting the dining room into another rentable bedroom, the property was appraised at $875,000. Keane-Rivera refinanced the mortgage after 12 months, securing a lower interest rate of 5.375%. This rate reduction significantly improved the property's cash flow.

As of September 2026, the nine-bedroom rental brings in about $8,876 per month in rent. After accounting for expenses such as a $4,786 mortgage payment, $690 for utilities, $607 for property taxes, and $212 for insurance, the estimated net cash flow is around $2,500 per month. Keane-Rivera noted that utility costs were higher than anticipated due to the home's age and insulation issues, but he has since made improvements. He manages his properties himself, dedicating about five hours per week to his portfolio.