Make sure you check your bylaws to confirm there are no issues renting out your condo as many HOAs have put limitations and other requiremets in place.You'll also need to update your insurance coverage to a landlord policy and make sure you understand any vacancy triggers - many policies will auto-terminate if home vacant more than 30 days.Start researching rental applications and leases ASAP, so you're ready with those when you start advertising.

The applicant never bothered to call us and verify.It is sad to see scammers take advantage of people and steal like this.

In my experience, you will always have to get a credit check as part of the application process as the lender needs to verify your credit history for anything outside of the norm and to see your credit score.

Deegan and @Arda Bircan There are technically 7 Tests for Material Participation (but 3 that are most common) -> the individual 500 hour mark, that the activity of the individual is substantially all, and that the individual participates more than 100 hours + no-one else spends more time than them.Litmus Test: Are your hours integral to the operationsThe hours that qualify must be substantially all hours and have a legitimate impact on the rental activities.Activities that generally count: showing the property for rent, taking tenant applications & screening tenants, preparing & negotiating leases, cleaning & preparing the units for rent, repairs, and improvements, managing the construction, purchasing supplies & materials, inspecting the property, responding to tenant complaints & inquiries, collecting & depositing rents, evicting tenants, writing & placing advertisements, and working on your websiteActivities that don't count: education & research, investor-type activities, and travel time..

Is this still applicable?

I haven't yet found a pressure treated and fire rated lumber or an intumescent paint that can be used for exterior applications.

Particularly in Philadelphia where there’s a ton of red tape to navigate and construction costs are disproportionately high relative to other markets.Ten years ago I could walk into a district L&I office, complete a two page application and pick up a building permit without plans for a single family renovation the next day.

Since you're purchasing your first home, you likely don't have this rental history.Lease Agreement: While a signed lease agreement is a positive step, it might not be sufficient on its own for a lender to consider the rental income in your mortgage application.

For the first few years I would post during renovations and even show the units to multiple applicants but I found that 98% of them lacked the vision to be able to “see” what the finished project would look like and then after the original pictures were sent or the showing I lost pretty much all of the applicants.

The money that is being held that you say is "refundable" won't be because you can't defer the capital gain on the 15% of gross that is being withheld because those funds are unavailable to be included in the next transaction within the timeframe required by the 1031 exchange. 121 home sale exclusion is not applicable to foreign owned investment property.