I did not mention, but I am meeting with my banker this week, and I will also be meeting with an Attorney so that I do comply with any laws and also form a good business model.

You say he decided to buy all cash without consulting you, or at the very lease after you both decided to form a partnership.

Great response and i'm very happy that my first post has received such a knowledgeable veterans inputTo answer your last question of would it be really shady that it's so far below market - what i'm noticing is that they are giving me pro forma numbers (best case scenario) to make the place look like a good deal, and my concern is that if the rents were too far below that, there may be a reason that they are hiding for it.

If they are investing with you, you could form a partnership for each deal, where you serve as general partner and control day-to-day operations while your limited partners (investors) provide the capital. 

.$10,100.00MONTHLY INCOME$6,592.83MONTHLY EXPENSES$3,507.17MONTHLY CASHFLOW9.09%PRO FORMA CAP$77,132.00NOI$72,150.00TOTAL CASH NEEDED58.33%CASH ON CASH ROI11.88%PURCHASE CAP RATE10% down payment @ full price.

And the property owners at that time came to form a partnership with a "committee" and created bylaws, which regulates the covenant, conditions and restrictions.

I would start elsewhere though.Question #1: do you think we should, in fact, form a 50/50 LLC for our partnership?

Obviously, there will be historical financial as well as pro-forma. 

I've caught the bug and already doing pro forma research on properties and quite entertaining! 

I was looking at a pro forma and it read Net Income ROI which I am unfamiliar with.