. * Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)* Don't allow for your own independent property inspection* Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)* Require you to pay for any renovation upfront* Sell only in cheap. low end neighborhoods* Don't accurately represent the neighborhood/property classification* Don't have consistent rehab standards for all properties* Don't provide a scope of work for the property* Can't provide references of repeat investors* Require you to close before a tenant is in place

A pro forma puts cash flow at about $200/month for the building, but, since we house hacked, we just absorbed that into our regular spending with some regular savings for repairs and maintenance, etc.Come around to 2020, we (with our tenants help) have paid down 10 years on our 30-year conventional loan, held by Chase.

You definitely don't need to ever see the house, but the more information you have, the better you can form a deal.You should provide the best estimates you can for ARV and repair costs so that you can recognize and then present a good deal to your buyers. 

It does no good to place capital with a sponsor who has a project with an attractive pro forma to find out later they can't be trusted.

Who can explain what the "Pro-forma Cap Rate" and "Purchase Cap Rate" actually represent on the BRRRR and Rental Property Calculators?

Before sending the financials to you they will see how they compare to the OM/Pro-forma and they will look for anything that sticks out.

.$2,250.00MONTHLY INCOME,$1,410.26MONTHLY EXPENSES,$839.74MONTHLY CASHFLOW,8.60%PRO FORMA CAP,$19,350.00NOI,$27,750.00TOTAL CASH NEEDED,36.31%CASH ON CASH ROI,11.06%PURCHASE CAP RATE

Each property you do you'll form a new LLC that is strictly for that property and defines ownership/splits by LPs and the GP (Blue Estate LLC).Lastly, you're basically asking for an entire business plan from start to finish.

. * Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)* Don't allow for your own independent property inspection* Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use      unrealistically low vacancy factors)* Require you to pay for any renovation upfront* Sell only in cheap. low end neighborhoods* Don't accurately represent the neighborhood/property classification* Don't have consistent rehab standards for all properties* Don't provide a scope of work for the property* Can't provide references of repeat investors* Require you to close before a tenant is in place

If the deal is really that overpriced, you need to illustrate that even in best case scenario (pro forma) conventional financing limits this acquisition to these variables.