Everything international investors ask before buying US rental property.

Foundry's new-construction rental homes start at approximately $220,000 in Houston, $250,000 in Dallas-Fort Worth, and $280,000 in Tampa Bay. These are all-cash purchase prices for completed, new-construction homes. Additional costs at closing include title insurance, property insurance, and closing fees (typically 2 to 3 percent of purchase price). Financing options exist for foreign nationals but require larger down payments, typically 30 to 40 percent.

A valid passport, proof of address in your home country (utility bill or bank statement dated within 90 days), and investment capital that can be wired to a US bank. That is all you need to begin the process. Foundry handles the entity formation, EIN application, bank account facilitation, and all transaction documentation.

The typical timeline from initial conversation to first rental deposit is 60 to 90 days for completed inventory and 120 to 180 days for properties under construction. LLC formation takes 7 to 14 business days. Bank account setup runs in parallel. Closing typically takes 30 to 45 days from executed contract. Tenant placement in Foundry's target submarkets usually takes 2 to 4 weeks after the property is ready. See our How It Works page for the full step-by-step process.

While not legally required, purchasing through a US LLC is strongly recommended. An LLC separates your personal assets from the investment property (liability protection), simplifies your annual US tax filing, and is preferred by most title companies and banks for foreign-national transactions. Nearly every international investor purchasing through Foundry uses an LLC.

In most cases, you should form the LLC in the state where the property is located. For Foundry properties, this means Texas or Florida. Both states have no state income tax. Forming in the property state avoids the cost and complexity of registering a "foreign LLC" in the property state, which would be required if you formed in a different state like Delaware or Wyoming.

An EIN (Employer Identification Number) is the tax ID number the IRS assigns to your LLC. You need it to open a US bank account, file US tax returns, and close on property. Foreign nationals cannot apply for an EIN online through the IRS website. The application must be submitted by fax or mail, which takes longer than the instant online process available to US residents. Foundry handles the EIN application as part of LLC formation.

Foundry charges $600 for LLC formation, which includes articles of organization, operating agreement, EIN application, and registered agent setup. State filing fees are included. This service is available to anyone, not just Foundry property investors. For Foundry investors, LLC formation is included as part of the investment process at no additional cost. See our LLC Formation page for full details.

Yes. A single LLC can hold multiple properties in the same state. Some investors prefer separate LLCs for each property to isolate liability, while others use one entity for simplicity and cost efficiency. Your CPA can advise on the optimal structure based on your portfolio size, risk tolerance, and tax situation.

Yes. Foreign nationals can open US bank accounts for their investment LLCs. Fintech banking institutions now offer fully remote account opening for foreign-owned entities. Traditional banks (major national names) typically require an in-person branch visit. Not all institutions accept foreign-owned LLC accounts, and compliance requirements have tightened significantly in 2025 and 2026. Foundry provides banking facilitation for $750 standalone, or included for Foundry investors.

The purchase is funded via international wire transfer, either directly to the title company at closing or to your US LLC bank account beforehand. Foundry provides wiring instructions and coordinates with the title company to ensure the transfer is received and applied correctly. Wire transfers from major international banks typically take 1 to 3 business days to arrive.

Financing options exist for foreign nationals, but they are more restrictive than domestic mortgages. Foreign national loans typically require 30 to 40 percent down payment, carry higher interest rates, and may require proof of income from your home country. DSCR (Debt Service Coverage Ratio) loans, which qualify based on the property's rental income rather than the borrower's personal income, are another option. Most Foundry investors purchase with cash through their LLC.

New construction eliminates renovation risk, deferred maintenance, and inspection surprises. Every Foundry property comes with a builder structural warranty (typically 10 years on the structure, 2 years on major systems). Operating costs are lower in the first 5 to 10 years because the roof, HVAC, plumbing, and electrical are all new and built to current code. For an overseas investor who cannot easily inspect a property in person, new construction provides a level of certainty that existing homes cannot match.

Foundry targets gross rental yields of 7 to 9 percent depending on market and property specification. Net yields after property management fees, insurance, property taxes, and maintenance reserves vary by market: Houston typically produces the highest net yields (5 to 6 percent), followed by DFW (4 to 5 percent), with Tampa Bay lower due to higher insurance costs (3 to 4 percent). All projections are based on current market rents. Foundry does not project appreciation or assume rate compression.

Foundry sources new-construction inventory directly from builders in each market. We negotiate pricing, select communities based on school district quality, population growth patterns, and rental demand, and build financial projections before a property reaches an investor. The investor then selects from properties Foundry has already vetted. We do not list properties from the open market. Every property in our inventory has been sourced through direct builder relationships.

Standard new-construction warranties typically include 10-year coverage on the structural components (foundation, framing, load-bearing elements), 2-year coverage on major systems (HVAC, plumbing, electrical), and 1-year coverage on workmanship and materials. Warranty terms vary by builder and are documented in the closing package. The warranty transfers with the property if you sell.

Foundry places every property with a vetted property management partner in the local market. Foundry does not manage properties directly but is accountable for who does. PM partners are selected based on specific performance criteria developed from years of managing residential property at scale. If a PM is not performing, Foundry addresses it or makes a change. See our Property Management page for full details on how we vet and monitor PM partners.

Management fees typically range from 8 to 10 percent of monthly collected rent, plus a leasing fee of 50 to 100 percent of one month's rent for new tenant placement. Some PM partners charge additional fees for lease renewals ($0 to $300) or maintenance coordination. All PM fees are included in the financial projections Foundry provides before you select a property.

Your PM partner handles late notices, tenant communication, and payment plan negotiations. If the situation escalates, the PM coordinates the eviction process through local courts. Eviction timelines vary by state: Texas is generally faster (30 to 45 days), Florida can take longer depending on the county. Foundry monitors these situations and ensures the PM is acting promptly.

Monthly. Every PM partner in Foundry's network delivers monthly owner statements that include rent collected, any deductions or expenses, maintenance invoices with documentation, and the net amount disbursed to your US bank account. Year-end tax documentation (1099) is provided annually for your CPA.

The PM partner handles all maintenance. Tenants submit requests to the PM, who dispatches licensed contractors. For routine repairs, the PM is authorized to approve work up to a pre-set threshold (typically $300 to $500) without contacting the owner. For larger repairs, the PM contacts Foundry or the owner for authorization. All maintenance is documented with invoices and photos in the monthly statement. New construction properties under builder warranty may have repairs covered at no cost to the owner.

Yes. Foreign nationals who earn rental income from US property must file a federal income tax return (Form 1040-NR) annually. After deducting operating expenses (management fees, property taxes, insurance, maintenance) and depreciation (a non-cash deduction spread over 27.5 years), many investors owe little or no federal tax in the early years of ownership. Texas and Florida have no state income tax, so only a federal return is required. Foundry connects investors with CPAs who specialize in non-resident filing.

FIRPTA (Foreign Investment in Real Property Tax Act) applies when a foreign person sells US real estate. The buyer is required to withhold 15 percent of the gross sale price and remit it to the IRS. This is not an additional tax. It is an advance payment toward your capital gains tax liability on the sale. Any overpayment is refunded when you file your tax return for the year of the sale. Withholding certificates (IRS Form 8288-B) can reduce or eliminate the withholding if filed in advance. Foundry addresses FIRPTA planning at the point of purchase, not at the point of sale. See our US Banking & Tax page for more detail.

An ITIN (Individual Taxpayer Identification Number) is the personal tax ID the IRS issues to individuals who need to file US taxes but do not have a Social Security Number. Foreign property owners need an ITIN to file their annual return. The application is submitted with your first tax filing. Foundry's CPA referral partners handle the ITIN application as part of the engagement.

No. Neither Texas nor Florida imposes a state income tax. Rental income from properties in Foundry's three markets (Houston, Dallas-Fort Worth, Tampa Bay) is subject to federal income tax only. This is a significant advantage compared to states like California or New York, which impose state income taxes on rental earnings.

Property taxes are an annual expense paid to the county where the property is located. Rates vary: Texas property taxes run approximately 2.0 to 2.7 percent of assessed value (higher than the national average), while Florida property taxes are lower at approximately 1.5 to 2.0 percent. Property tax is the single largest operating expense for rental properties in Texas. Foundry includes property tax estimates in all financial projections.

When you are ready to sell, the property is listed through a real estate agent in the local market. Foundry can recommend agents in each market who have experience selling investor-owned properties. The sale proceeds, minus FIRPTA withholding (15 percent of gross sale price for foreign sellers), closing costs, and any outstanding expenses, are deposited to your US LLC bank account. From there, you can wire funds to your home country account.

In some cases, selling the LLC (transferring membership interest) rather than the property itself can provide tax advantages and avoid the need for a new title transfer. This approach is more complex and should be evaluated with your attorney and CPA based on your specific situation. It is not appropriate for every transaction but can be beneficial for certain investors.

Sale proceeds are deposited to your US LLC bank account after closing. You can wire funds from your US account to your personal or business account in your home country. International wire transfers from US banks typically take 1 to 3 business days. Your home country may have reporting requirements for incoming international transfers above certain thresholds. Consult your home-country tax advisor for guidance on declaring US real estate proceeds.