Local vs. out of state financing for out of state rental

[Ben D.]

Hi everyone, I am looking at purchasing an out of state rental property and had the following questions when it comes to financing it: 1. Do you recommend using a bank that's local to me or local to the property? 2. Would you suggest a credit union or a national bank? 3. If you live in a non-recourse state, but the rental and bank financing it are in a recourse state, what happens if you default on the loan? Thank you in advance. Ben

[Kathy Henley]

Hi 

@Ben D. I live on the west coast and invest in St.Louis.  My team is in St. Louis.  This is my real estate agent, my property manager, insurance broker and accountant.  My lenders too.  Success in real estate is knowing the local market.  When I ask for a loan for a duplex on so-and-so street, the lenders know what its all about.  The 'who to use' answer is who ever says yes to me and has good terms.  I can't help you with the third question, defaulting has never been in my focus.