Financing for my second rental property

[Matt R.]

Hello, all!

I've bought my first SFR, fixed it, and rented it, and I am now at the "refinance" step of BRRRR. To get my next rental property, I need to
go to some kind of lender and get some kind of loan, but I'm not sure exactly what to ask for.

Here are the moving pieces:

My one SFR. I own it outright, 100%. I have owned it since spring 2016, and it's been rented since summer 2017. I don't have any kind of HELOCor other loan against it. Based on 30 seconds of researching comps on Zillow, it would probably list on the MLS at $105K +/- if I decided to sell it today.

My next rental property. Most likely another SFR. I was originally thinking of something in the $90K-$100K ARV range, but the market has tightened so much that I might have to add $10K to that.

My "cash for investing" pile. I have enough to put 20% down on the types of properties I have been looking at, as long as it doesn't need
more than a few thousand dollars' worth of rehab. Beyond that, I would need to either have a lower down payment (down to around 15%), or figureout a way to finance some of the rehab costs, or both.

A local regular bank. I have my real estate account there. They have been good to work with so far, but I haven't asked them about loans yet.

A local credit union.  I have a personal account there. They have been OK to work with so far, but I haven't asked them about loans yet.

My real estate business. It's just me; not a partnership, LLC, Inc, or anything else.

My residence. I own it outright but I really, really, really don't want to take out any loans against it, based on a bad experience in the past.


My ideas so far include:

Go to the bank or the credit union and get a regular mortgage loan.

Go to the bank or the credit union and get a loan against the rental house - HELOC? Something else?

Go to a new bank (one I haven't done business with before) and do one of the above two things.

Go to a private lender and get some type of loan from them.

My questions:

Is one of these options much better (or much worse) than another for some reason?

Is there a good option I haven't thought of yet?

Thanks for your help!

Matt R.