BP FAM! I'm looking to leverage some equity in an out of state investment property using a HELOC using the BRRR method. It seems a local credit union is the best way to go in terms of lowest rates. My question is this, assuming that is the best method, should I use a local credit union where the property is located (colorado) or where I live (los angeles)? Not sure that actually matters, but figured I'd verify with you all! Thank you.
@Justin Franklin why not do both? It's will probably be easier to find someone local to the market you invest in since they know the market but I would try to build both in case one is unable/chooses not to perform on a given deal. As far as a Heloc if you own your rental in your own name and not in an LLC you can get a Heloc at 80% LTV on the rental through Pen Fed if you have 3 properties of less including your primary.
Some local credit unions will restrict membership to local residents only, or they won't do out of state deals. There are exceptions to every rule, but that is going to filter out a lot of the credit unions you talk to.
@Justin Franklin , it doesn't matter where the lender is located, as long as they're legally able to lend in your state. The rules differ based on the kind of lender (bank, CU, etc.).