We look at many factors before deciding on a suitable tax structure.

Management fees are typically around 10%, so you need to factor that in when running numbers if you plan on have management.

Somehow you will want proof of that amount just in case the PA Dept of Revenue audits the transaction; going through a title company will help you to have proof, because the PA Dept of Revenue will use the tax assessed value multiplied by the leveling factor for that area to impute the property value amount upon which transfer taxes are expected.

@Robbie Reutzel I have not factored putting money away for repairs, would do so out of the rental income. 

Now, it can depend on a number of factors, such as: what state the property is located in, whether the new owner intends to occupy the property or not, whether the tenant is Section 8 or not, whether the tenant is related to the previous mortgage holder, whether the lease was entered into before or after the previous owner obtained the mortgage, etc. 

That may be the biggest factor.

In Pittsburgh particularly, while some neighborhoods have seen rapid appreciation, in general our market appreciates relatively modestly year over year.In terms of an area to live in, it sounds like your commute is an important factor to you.

There's so many factors to weigh when you are building new construction.

I assume that the lender will accept my personal emergency fund as a factor towards the 6 month mortgage cash reserve?

Yes, the actual mortgage payment may be less than rent, but when you factor in all of the maintenance costs (and your time) involved with maintaining the home, the difference shrinks considerably.