We need all of your pro forma expenses, closing costs, initial repairs, etc.

I know of 3 basic reasons most people form LLCs:1) Asset protection / Anonymity.2) Pooling funds from a small investor/partners that do not require syndication to forma business entity.3) Because someone told them you're supposed to do that.The first two reasons have validity.

I run all my investment and development pro forma analysis on a pre and post tax basis.

Insist on actual data, not pro Forma income and expenses. 

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

My advice would be to get the insurance, form a company and get the proper licensing from your local jurisdiction.

Or you could form a new LLC and they contribute the property and you contribute your good looks again after the 1031. 

I suspect in my state that signging the lease alone doesn't form a contract without "consideration" in the form the that first money. 

Personal debt-to-income ratio is not a consideration for underwriting these loans.In the alternative, some people go to private lenders (in simplistic terms, groups of wealthy people who have pooled together to form a mortgage company) who are willing to lend on investment properties that banks are not willing to underwrite.

I received pro-formas from the builder but not sure if those numbers reflect reality.