Advantages of working with a local lender?

[Martin Koch]

Hey BP,

First time poster - my name is Martin and I live in San Diego. Professional background is in business development & technical sales in the biotech space. My experience in real estate investing is limited, though I did purchase a condo here in Little Italy in 2019 that I plan to run as a long or mid-term rental in the coming years. The condo is in a highly sought-after building in the neighborhood and serves as our primary residence today. I expect the unit to cashflow $1,100+/mo when I get it on the market as a long-term rental. 

I'm gearing up to make my next investment and have identified a few target markets. My budget would allow for another purchase in San Diego, but I'll most likely be limited to properties within HOA communities. My gut says it would be best to avoid another investment within an HOA (an expense I have limited or no control over), though I'd welcome opinions from the community.

This has me considering other markets - some of which I can drive to (Arizona) and others a bit further (Midwest). My preference as a novice investor would be to stay closer to home so that I can more easily travel to the market for due diligence, general maintenance, etc. 

My immediate question is about identifying a lender to support the new investment. How important is it to work with a lender that is local to your target market? If I were to invest in Arizona for example, would it be advantageous to identify a lender there or would any here in CA work just as well?

For context, the opportunities I'm most interested in are SFH and small MFH long-term rentals, ideally turn-key.

Thanks and happy to be here,

Martin