Be conservative not the pro-forma junk brokers and sellers are pushing.

I am trying to figure out which parts of this pro forma data are completely out of line.

Great first step to learning and investing.I highly recommend BP's Ultimate Beginner's Guide, it helps to form a general foundation in the industry.

The owner is putting a pro forma together for me now.The owner has a 24 unit apartment building that was built in 1979. 

As you know consideration must go in both directions to form a contract.

I would try and look up my landlord-tenant law online for MA.  

Then you still need to figure out what the rents will be with the heat on the tenants so you can properly calculate all of your pro-forma ratios upon stabilization.

Some lenders might recognize some level of loan to cost(+/- 80%), but you will have to verify your expenses and they will make sure you are bellow 65% of the new value by appraising.I recommend that if you are serious you write a 1-2 page plan, put in a pro forma deal of an actual property you would buy, along with a breakdown of the rehab portion, how you plan to manage the tenants (or if you a have a professional manager), ect.

@Joe Trinsey The pro forma says $850, but I can't rely on that.

I think i get what you are saying...here's my take:For pro-forma purposes, yes, absolutely include the capital reserves as that is what you "expect to spend" in worse case scenarioFor historical performance purposes, then, you can make an argument to NOT include it since you never spent the money, but unless you distributed that money back to your investor, then you may as well include it toothat's just how i would do it...