Closed on my first BRRRR, Questions about financing

[Joshua Zdunich]

Hello everyone! I am new to BiggerPockets and Real Estate. This is my first post, so please forgive any newbie mistakes but feel free to give me constructive criticism.   My prop story...

This is my first property.  I closed on a 1bd, 1bath apartment in City Heights, San Diego on 7-12-19.  Bought at 145k, all cash, with a 20k seller credit at close, so essential the prop was 127,500, all said and done.  The complex is 15 units, 60/40 owner occupied and 2 of the units sold in the last year for 163k, and 165k. The prop appraised at 160k and I have it rented out at $1275, month to month and a H.O.A. of $190/moth.  Currently we (all the landlords) are repaving the parking lot, installing security cameras, landscaping, fresh paint on exterior, new roof and updating the laundry room.  This should all be done in 3 months without a loss of income from vacancies.  

  I plan of pulling out all my original seed money, which after rehab should be $137,500-140k. The local comps are $210-$230k.  I currently bank at Chase and have been there for 5yrs.  I don't want to use them for my refinance because they have one of the highest rates for brick and mortar.  I was looking into local San Diego credit unions but the problem with them is they won't do loans out of state and my next prop will most likely not be in California.  

My question is about financing and banks. What brick and mortar national banks if any are best for starting a relationship with (business, personal accounts, making my primary bank) in hopes to refinance my first BRRRR and hopefully many more down the road?

Or should I just stick with Chase for my banking needs and go through non brick and mortar lenders when refinancing?

Thank you guys for your time!  I hope I gave all pertinent info!

Josh Z.

[Peggy Beauregard]

Hi Joshua, Find a mortgage broker. They know where to find the best rates and work with nationwide companies. Be sure you put 6-9 months reserves away to cover any vacancies including taxes, utilities and insurance. Make sure tenant is carrying insurance on their possessions. The HOA is paying for all the items you listed. Make sure the reserves in the HOA cover roof, replacement of balconies and other items. A good HOA sets the reserves to cover all replacements and insurance without calling for a capital fee from the homeowners. And consider sitting on the HOA board. Best to you and congratulations on jumping in.