Originally, I Was going to form a Single member with just me as the owner, but I am bringing my brother in because I want the LLC to fill a tax return so that few years from now it can help if i want to sale the properties or buy more properties as i will be acquiring more.

Does your pro-forma include a development budget with all soft and hard costs included as well as an operating budget, equity cash-flows, sources and uses of funds, lease-up time table, sales proceeds analysis, etc.? 

Ahh I see, I'll have to do more research on the LLC side of things, why is it then that a lot of real estate investors insist/advise newbie investors to form a LLC for investing if the banks won't fund them?

If you can hammer down your assumptions and you can get that number down to 40% you'd really be moving the needle on your pro-forma.

Two of the major differences between what I use and what you have are calculations for future years (P&L pro-formas, effectively), as well as calculations for IRR, DSCR, and ER. 

If you try to turn this over to investors and you have a deal that has terrible numbers, those investors are going to form a negative impression of you from the beginning and you may lose them from the start.Good luck!

I’m seeking advice that can help me form a contract that is in basic comprehensive layman terms.

If you really know how to manage real estate, it may be a good idea to start off with properties like this until you build your nest egg to acquire better properties, but proceed with caution when buying in these areas, and don't expect the properties to perform as well as the pro forma states it will.

Hi,Can someone help to review and comment on my first pro forma estimate below?

Here are the numbers of the deal, experience eyes and direction is what I am looking for in regards to setting an offer amount that makes sense for its current worth. 6 unit owner asking/LOI has agreed to 600,0006 unit - 3 2bd/1bth, 2 3bds/1bth and 1 4bds/1bthtotal rents+laundry = 60,100 current/ pro forma= 70,200 (this can be achieved without any upgrades)expenses = 23,000 currentNOI=37,100 using the cap rate (.09) method of valuation = 412,222Got cap rate from a local CRE agentBuilding is 100% occupied.