Legal Structure & Taxation for Foreign Investors buying RE in US

[Gil Pang]

Hi BP,

Was wondering what the set up and implications are regarding Foreign Investor buying RE within the US.  (inquiring for a cousin)

Legal Structure:

- Would an LLC be the ideal set up?

- If they were to buy all cash, would i be able to handle all of their matters with power of attorney?

- in the case they want to do a refi/cash out, would additional criteria apply to an LLC held by a foreign investor?

Taxation:

- I assume taxation would be the same like on any other LLC. but how would taxation work overseas given that they are receiving rental income from the states via LLC?
- Can the foreign investor use a 1031? 

-Upon the foreign investor selling the house for a profit, capital gains tax occurs in the states and overseas?  how would that all work?

Thanks in advance.