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.

I like my pro forma numbers to be conservative. 

These properties meet all pro forma underwriting standards.

Willing to pay for expert Financial/Accounting advice and looking to form a long term relationship with an experienced professional.

The pro forma on the fourplex suggests $600/month cash flow when it is fully leased in a year (or possibly longer). 

I hope you didn't base a pro-forma on what the floor level tenant were paying in rent as street level and upper level are apples and oranges in comparison.

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.

Build a pro forma, discount for risk and consider the time value of money...