My first no money down duplex

[Ashley Kehr]

I started investing in real estate in 2014. I purchased three duplexes and took a break until 2017. I found Bigger Pockets and knew I had to up my game. Since April 2017 I have doubled my portfolio. My one success story I wanted to share was a Duplex I purchased for $35,900. I met with a loan officer from a small local bank with only 6 branches. I did have a relationship with this bank through my job. I handed the loan officer a Bigger Pockets calculator report and he unexpectedly told me he would give me an unsecured short term 90 day loan for the purchase price so I could do a cash offer.  I got the house for $35,900 (asking $42,000). I put in $800 (a new fridge and stove for lower unit) after closing. I started a refinance process the day after closing with the same bank. They were offering me a mortgage based on appraisal right away. I found most banks I spoke with wanted me to wait 6 months to a year. Three weeks after closing the house appraised for $55,000! I  refinanced for 75% of appraisal. I rented out both units three days after closing and have rental income of $1200 a month. It will cash flow around $200 a month after P&I, fixed expenses and saving for variable expenses. Not my best cash flow but definitely my best cash on cash return! 

[Darian Richardson]

@Ashley KehrThis is awesome. In the near future I am thinking of doing something similar with my duplex. Just to be clear when you refinanced 75% of the appraised value equaling $41,250) You paid back the first loan of $35,900, leaving a remainder of $5,350 in your pocket correct?

What were the terms  of the unsecured loan that you first received?