BGP update-source command not working

[MapleMagician]

I have created the most simple scenario to try and understand the

update-source

command and yet I cannot seem to get these two devices to peer. Trying to peer loopback5 on R500 with g0/2 on R4. Everything is reachable via OSPF, I cannot make sense of why it isn't working.

R500 config

interface Loopback5
ip address 5.5.5.5 255.255.255.255
!
interface GigabitEthernet0/0
ip address 11.5.0.5 255.255.255.0
duplex auto
speed auto
media-type rj45
!
router ospf 1
network 0.0.0.0 255.255.255.255 area 0
!
router bgp 500
bgp log-neighbor-changes
neighbor 11.5.0.4 remote-as 200
neighbor 11.5.0.4 update-source Loopback5

Router 4 config

interface GigabitEthernet0/2
ip address 11.5.0.4 255.255.255.0
duplex auto
speed auto
media-type rj45
!

router ospf 1
network 0.0.0.0 255.255.255.255 area 0
!
router bgp 200
bgp log-neighbor-changes
network 11.200.54.0 mask 255.255.255.0
network 11.200.144.0 mask 255.255.255.0
neighbor 5.5.5.5 remote-as 500
neighbor 11.200.54.5 remote-as 200
neighbor 11.200.144.14 remote-as 40
!

[MHM Cisco World · Accepted solution]

Add neighbor ebgp multihop 

Since now it one hop far between two bgp peers

Or disable direct connect <- this I prefer in case we use LO as update source

MHM

[MapleMagician]

Yes! Both of these methods worked without even needing the

update source

command. This just filled some big holes in my understanding of bgp peering. Thank you!

[MHM Cisco World]

Friend you are so so welcome 

MHM