Specifically, (1) always use a closing attorney and legal contracts.(2) Always be honest because there is never a reason not to be. 

Please correct me if I am missing some line items here, but here are the working numbers for the property:+ Gross Rental Income: $150,000- Cleaning Fees: ($21,600)- Management Fees:  ($19,260)- Property Taxes: ($3,700)- Insurance: ($2,400)- Trash & Local Tax: ($650)- Utilities: ($7,200)- Pest Control ($560)- Supplies/Maintenance: ($1200)- Acct/Legal: ($1500)TOTAL EXPENSES = ($58,070)Net Operating Income = $91,930---Based on my limited understanding of the local CAP rates for similar properties in Philadelphia, PA 19106 it looks like 5-6% is a realistic number. 

Sometimes less, but you have to have the mindset that if you want something, you will try all legal avenues to get it.

Overlays are extra rules that lenders put on top of Fannie/Freddie (and others) guidelines. 

My aunt consulted with her attorney who said that such a quit claim deal with a side agreement would not be legal. 

-------------------From a legal perspective, any mortgage recorded after another loan is a second mortgage.

I have been talking to some agents there and the plan would be getting a primary residence loan and have my family move in there for the next few years as they get more acclimated to the area.I was wondering if anyone has started their rei career in a city so far away, or if there would be any legal issues financing the home this way.Appreciate any feedback!

I called the health and safety board and they said its legal.

I've never cared enough to pursue but since we're on the subject... can some legal folks shed light on their opinion of a a disregarded LLC as a personal liability shield when the activity of the property is on the personal return of the LLC member and all income goes directly to the member? 

Unless the seller is the legal operator on both the well and sewage.