I would love to form a partnership!

It means they are not operating the property correctly, not reporting their expenses properly, they are owner operators and do everything themselves on the cheap, or a combination of these.Put together a pro forma based on how you will run the property so that you can get more comfortable with your numbers.  

1-Speak with a Virginia Attorney;2-After speaking with Virginia Attorney, determine if it is better to:a) File your Sub S as a foreign entity, orb) Form a Virginia LLC that is wholly owned by your (out of state) Sub S.c) Hire and pay a Virginia resident, or company to act as Resident Agent for your new entity.d) Pay for the appropriate business license in the County/City in Virginia where your Virginia entity will have a physical presence. 

Purchased for 217k, currently worth on the low end around 350k, cashflows a little over 4k per month at around 45% occupancy rate, needs about 100k - 150k of rehab, once renovated with market rents in place I'm looking to bring in close to 9k per month in gross rents on the low end and will be worth in the 500k to 550k range according to a few appraisers I have ran pro formas across.

You don't have to amend your returns to file this form. As

Have you performed a Pro Forma?

Also find some sponsors are too optimistic on their pro-forma so the real money I get is a little lower then they projected it's like 9% vs the 10.5% they projected but it changes widely where the last quarter they did much better and best the projection so just another thing to watch out for when doing equity.... your ACTUAL returns will vary ;).

I will say that some sponsors paint very rosy pro-forma and in realty it's only in the mid-teens for the IRR I'm seeing.The ones that I see that are 20%+ IRR are more risky, like ground up or going after distress plays and these guys usually have significant buy-in $50k-$100k and longer holds 7-10yrs.There was an article I found before that talked about Rev A+ offerings (open to non-accredited) creeping up on some platforms:http://astudentoftherealestategame.com/passive-rea...Good luck!

Coming form a W2 (9-5 job) background doesn't exactly lend itself to understanding this principal.I wanted to try and start this string to hear some peoples stories of growing form a W2 income based person to a business owner and what allowed that to happen.To kick it off, a little over 2 years ago my wife and I started pursuing RE aggressively and this pursuit is what lead us to where we are today.

I would form a new LLC with both of you as members.