How a Seattle engineer turned a century-old house into a rental machine

Keane-Rivera secured the 3,900-square-foot property in December 2024 for $630,000, successfully negotiating the price down from $665,000 by leveraging the home's unappealing status—specifically a lingering cat urine odor that deterred other buyers. Rather than putting down 20%, he opted for a 5% down payment of approximately $32,000. This capital-conscious approach preserved funds for a $150,000 renovation, which included finishing the basement to add three bedrooms and two bathrooms, alongside converting the dining room into an additional rentable space.

Funding the project required a $50,000 loan from his 401(k) and significant personal labor to manage costs. The initial mortgage featured a 7.75% interest rate, which Keane-Rivera accepted to secure a $10,000 closing credit, planning to refinance once the renovations were complete. After 12 months, he refinanced to a 5.375% rate, a move that stabilized the property's profitability. The home now generates $8,876 in monthly rent, with expenses including a $4,786 mortgage and various utility costs, leaving the investor with a $2,500 monthly surplus.

Managing 19 units across three properties, Keane-Rivera maintains efficiency by utilizing virtual assistants for screening and scheduling. He notes that the primary challenge remains the unpredictability of century-old infrastructure, citing unexpected costs like $10,000 for electrical rewiring and high heating bills from poor insulation. Despite these hurdles, he views the model as a way to provide affordable housing while insulating himself against broader market volatility.