Hi @Alicia Gates and @Will Gates!
Exciting times! The first good thing that you're doing is communicating about it. I learned early that my wife and I have to agree on all of the assumptions, target returns, etc.
Here's my $0.02...
With regard to your analysis - if you haven't already, I suggest using the BP calculator for this as it includes a lot of things. It'll include boxes to put in vacancy (which you have), cap ex, property management fees, renovation costs, HOA, etc etc.
Specifically to this property - have you seen the rent roll? Until when are the units leased? What expenses do you have to pay vs what expenses go to the tenants (I'd expect that you have to pay at least trash)? Are the units individually metered? What are the property taxes on these units? (you can usually look up property taxes on your county assessor's website)
Forming a business - probably not necessary yet if it's just you two on the deal. However, forming an LLC is super quick (lots of online places to do it) and not super expensive. If it were me, I'd probably just do it.
Business insurance - probably a 1hr call to your insurance agent to discuss costs/coverage of landlord insurance, liability insurance above landord insurance, etc. Whether you go with it or not, you can add this cost into your estimates - though you'll need landlord insurance for sure.
Leases - probably another 1hr call to your housing authority (I looked it up and I think this is yours: http://www.mhatn.com/). You'll have to comply with your state's regulations.
Property management - given that your property is 30-45 minutes away, it may be prudent to estimate in a property manager (they typically charge 10%).
The 50% rule is just a rule of thumb - be sure to name and understand each cost specifically - especially your first few deals. That way, you have the peace of mind.
Best of luck! Crush it!
