Last but not the least, A VERY good property manager who can educate you on a market, help you form a strategy, fit right into your due diligence process, and execute on a clear takeover game plan as soon as you hold title! 

This structure allows you to form a corporation and make your retirement plan a shareholder.  

Can you describe the appreciation concern in more detail and maybe describe how a "typical" deal is structured in a pro forma?  

I'm starting to form a more solid business plan, and working to create investing strategies.

One last thing, be careful if you working on a pro-forma furnished by the realtor, the numbers sometimes are crazy...Hope is gonna help you!!

I'm putting together a Pro Forma from scratch for a potential commercial property I am thinking about buying.

I am buying cheaper condos. 1/1 units about 700 square feet.Purchase Price:$44,900.00Purchase Closing Costs:$1,000.00Estimated Repairs:$5,000.00Total Project Cost:$50,900.00After Repair Value:$50,000.00Monthly Income:$700.00Monthly Expenses:$368.33Monthly Cashflow:$331.67Pro Forma Cap Rate:7.82%NOI:$3,980.00Total Cash Needed:$50,900.00Cash on Cash ROI:7.82%Purchase Cap Rate:8.86%How does that sound? 

I definitely need to form a good relationship with an attorney.

In that structure, you form a C corporation as an active business - real estate development, restaurant, retail store, etc.  

As such, it is good to ascertain tangible goals and time frames, investment objectives, and so on for the partnership BEFORE it's formation and incorporation.3) If you form a partnership - CRITICAL - insure that you have a dissolution agreement in place BEFORE you incorporate, as part of the incorporation documents.