First Investment Property Update

[Jared Skov]

After sitting on a chunk of change for 6 months from our last live in flip, waiting for the right opportunity, we finally found a good deal on a duplex. Let me first start off by saying you can find the right deals in a hot market if you're patient enough and good at negotiating. We were tired of our savings account only making us $8/mo but didn't want to tie up any more in the stock market. Literally $8/mo, so we could buy and split a sub sandwich one day a month?

Fast forward to purchasing a duplex early January of '18 with 25% down, now April 1st 2018 and we're cash flowing $650/mo while the mortgage principal is being paid down ~$360/mo by our tenants. Finding a cap rate >7 on a duplex with positive cash flow in Western Washington seems like a unicorn in this market, but we found it and so far I enjoy mowing the lawn every 2-3 weeks as an excuse to check in on the tenants. Now that our money is working for us, we are going to sit back and see what happens with this crazy market while our duplex savings grows for the next appliance failure or tenant moving out. The Seattle area real estate market is still on fire, leading the country for the 17th straight month! It has to slow down at some point right?

[Account Closed]

Jared Skov Congrats on finding a deal in WA below market! I know how you feel about the Seattle market I was thinking about selling my duplex in Burien this year but I’ve decided to let it ride a couple more years.