Rental Investment in KY - Loan advice requested

[Steven Bates]

Hello BP members,

I am a new BP Pro member myself.  I bought my first house in 2017 and got a great rate - 3.75% and 0 points.  Now I am looking into the Northern Kentucky Market for rental properties in a buy-and hold multi-family approach (but still under 4 units per building so as to avoid commercial loans).

I have found a few properties I am interested in that cash flow well and I have found a real estate agent and property manager I am comfortable with.  Now I am communicating with a mortgage lending company that is offering what is seemingly high rates.  5.75% with $1,240 lender fees.  Is this really what the rates have risen to or am I being taken?  How valuable is shopping around and reaching out to small credit unions for multi-family out of state purchases?

I appreciate any help and guidance people can give.