College student makes $500/mo on 1st deal.

[Mackenzie King]

Investment Info:

Single-family residence buy & hold investment in Fort Smith.

Purchase price: $72,000

Bought a VA foreclosure for $72,000 and improved with about $30,000. 2 Bedroom 1 bath, that I converted to a 3 bedroom. We also finished out the above garage apartment that rents separately.

What made you interested in investing in this type of deal?

The above garage apartment made the ROI very attractive

How did you find this deal and how did you negotiate it?

MLS; I am a Realtor.

How did you finance this deal?

100% financing including improvements with a local bank that trusts me. Improvements appreciated my 20% equity.

How did you add value to the deal?

Rewire, refinished hardwoods, new countertops, new paint, added a bedroom, put vinyl floorings in apartment.

What was the outcome?

$500 monthly in passive income on one aprox. $105k note plus about $20k in sweat equity added to my net worth.

Lessons learned? Challenges?

FIND GOOD CONTRACTORS. Especially ones that will put your job first. My electrician strung me out for months and cost me thousands in mortgage payments, plus lost months rent.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Local bank, and used myself as a realtor.