All Forum Posts by: Andrea Campo

Hi everyone,

Last year, I created an LLC, but I haven't purchased any properties yet.

I would like to buy a property close to where we live, in which my wife's parents will live for some years. After that, I would like to rent it out.

With that said, should I buy it under my name and then transfer it to the LLC when the time comes to rent it out, or should I buy it with the LLC immediately?

And, if I buy it with the LLC immediately, do my in-laws need to have a rental contract or can they just live in it?

Thank you for your help,

Andrea

Quote from @Elise Bickel Tauber:

I agree with the above. Landlord tenant laws are set by the State. What are you specifically looking for? There are additional rules/laws for magistrates etc when it comes to certain things. Is it eviction? Deposits? etc? 

 Hi Elise, 

Thank you for your reply. I am not looking for anything in particular, just trying to learn as much as possible since I recently moved to the US and I would like to start investing in rental properties.

Andrea

Quote from @Nathan Gesner:

Quote from @Andrea Campo:

Landlord laws are usually established at the State level. You'll occasionally find some laws at the City level or from an HOA.

Here's PA law: https://www.nolo.com/legal-enc...

Do yourself a favor: buy "Every Landlord's Legal Guide" by NOLO. Written by attorney investors, it's full of practical advice pertaining to management of investment property, has sample forms that can be edited, and - most importantly - they tell you what your primary state laws are and where you can read them. It's updated every year and is the best $40 you'll spend as a Landlord. There is one book for 49 states and a separate book for California.

 Thank you Nathan, 

I will definitely get the guide.

Andrea

Hi Everyone, 

I am having troubles finding the landlord/tenant laws for the Allegheny County in PA. The only document I have found is "The Landlord and Tenant Act of 1951" (https://www.legis.state.pa.us/...).

Is there anything else I need? 

Any advice on where to find the appropriate documents would be much appreciated!

Thank you, 

Andrea

Thank you Everyone for the tips!

I was thinking about townhouses also because it looks like they are more "rentable" in my area. I'm renting a townhouse myself, and in my complex many of the townhouses are rented. If I look at SFHs for rent in my area, I can see that there are some that have been on the market for months. 

Is there a way to see online if the properties are rented out, so I can understand if there is a market for SFHs? What I'm doing right now is to save on Zillow all the SFHs for rent in my area and check how long they stay on the market, but it would be great if there was a way to check which properties are currently rented. 

Thank you,

Andrea

Hello everyone,

I recently moved to the US from abroad, I would like to start investing in real estate and I was wondering if investing in townhouses would be a good idea.

The pros are that there are many in my area, it's a very nice area (North of Pittsburgh, PA) so I wouldn't have to worry about problematic tenants and, they are almost all rent-ready or need very little cosmetic improvements. This would definitely help me overcome the fear of starting investing in a new country.

On the downside, cash flow is almost always negative if I put 20% down and considering the current mortgage rates. That wouldn't be a big problem for me, I have a good job and have no plans to leave it, I would invest to create wealth in the long term. But does it make sense?
I did some research, in my area a 2beds, 1.5 baths is about 200k and they rent for about 1.6/1.7k.

Just wondering if anyone is investing in this type of property, I'd be happy to hear your feedback.

Thank you!

Andrea

Thank you everyone for your advice!

Andrea

Hi Everyone, 

I'm starting to analyze some rental properties in the Pittsburgh area - this is just a theory exercise for now, since I'm moving there in May.

Anyway I'm struggling to find properties that cash flow, even when they fall into the 1% rule. Maybe I'm being too conservative?

Here's an example of an analysis of a $170000 townhouse that rents for $1700:

Purchase price = $170000

Closing costs (5%) = $8500

Pre-rent holding costs = $1200

Rehab/ Repair costs = $5000

TOTAL COST OF PROJECT = $184700

Down payment (25%) = $42500

Loan = $127500

Investment = Total cost of project - Loan = $57200

Rent = $1700

Mortgage (30 year fixed at 3,62%) = $581

Property management (10%) = $170

Maintenance and repair (10%) = $170

CapEx (10%) = $170

Vacancy (5%) = $85

Water and sewer = $75 (from Pittsburgh Water and Sewer Authority)

Insurance = $100

Taxes (2.08%) = $294.67

TOTAL MONTHLY EXPENSES = $1646.23

CASH FLOW = $53.77 

CASH ON CASH RETURN = 1.13 %

Are my assumptions ok? 

I know that maintenance costs and capex depend on the age and condition of the property, but since I cannot visit the properties (and also I don't know the maintenance costs in the US yet) I'm assuming a 10% for each. Too much?

Also $100/month for insurance, makes sense?

Any opinion from more experienced investors would be much appreciated!

Thank you, 

Andrea

Hi Everyone, 

My wife and I will move from Italy to Pittsburgh in May and we are looking for a house to rent. I'm Italian, she is from the US.

We noticed that all the rent applications require to provide the SSN. Is it safe to give it? Is there a way to avoid it?

Moreover, if I apply under my name, I can show the salary I will get in Pittsburgh but I'm not sure what my credit score is (I just got my SSN and opened a bank account, but I haven't found a way to check my credit score from Italy without a US phone number). On the other hand, if she applies, her credit score is excellent but her income is very little.

How does this work? Is the income/credit check only on the person that applies or on the household?

Also, if we asked a real estate agent to look for properties for us, could (s)he help with the application process? Is the agent paid by us or by the landlord?

I'm sorry but this is completely different from the procedures in Italy and I'm a little confused.

Thank you for your help!

@Shai Flax Thank you for your tips!

I'm already using Zillow and I will definitely use Niche, thank you. I'm trying to understand if investing in rental properties in the Allegheny County (where the property tax is pretty high) would make sense or if it's better to look in a nearby county (maybe Cranberry Township, or Butler, which are very close to where we want to live).

When you talk about using a FHA loan to start investing, do you mean buying a multifamily and live in one of the units? Unfortunately there are not many multifamilies in the area we'd like to live.

Thank you,

Andrea