Here is the pro forma financials for the property……………they assume 150% occupancy and a 150% rent increase 9.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I would identify a market based on your current capacity and begin to network online and here on BP to form a solid trustworthy team to help you get going. 

If the existing mortgages were at current interest rates, the P&I would be about 30% higher and the pro forma cash flow would no be much more than break-even.

It comes down to what your pro forma is, and what lenders are willing to lend on the property.75k per unit for 550 in rents in Dayton is probably over valued, especially if there is deferred maintenance.

When I started looking at the properties listed and their pro forma, I realized that in the name of “hands off” investments, they’re ripping off people.

Ive seen many attempt to DIY on their own form a distance and fail.  

You probably want to form a general partnership or limited partnership.

Therefore, you could say something like "taxes aren't based on your cash flow," but if I were making such as statement, it would be more like "taxes aren't DIRECTLY based on your cash flow" because that better captures the spirit.You have multiple sets of numbers: 1) [actual] cash flow, 2) net income, and since you mentioned running numbers 3) pro forma numbers (i.e., projected/estimated cash flow). 

The notice of sale must include an executed duplicate original of the third-party purchase agreement and make available specific details about the property including the most recent rent roll, list of vacant apartments, income and expense report for the 12 month prior to the notice and any other information the Housing Commissioner may specify by rule.Tenants’ first right to purchase the building before a third-party (‘Right of First Refusal’)Tenants in buildings with five or more dwelling units have a period of 90 days from receipt of ‘notice to sell’ to form a union to exercise their “right of first refusal.”