Purchase Price:$129,000.00 duplexPurchase Closing Costs:$2,500.00Estimated Repairs:$1,500.00Total Project Cost:$133,000.00After Repair Value:$129,000.00Down Payment:$32,250.00Loan Amount:$96,750.00Loan Points:$0.00Amortized Over:15 years Loan Interest Rate:5.500%Monthly P&I:$790.53Total Cash NeededBy Borrower:$36,250.00Monthly Expenses: $1,519.86 Monthly Cashflow: $325.14 Pro Forma Cap Rate: 10.38% NOI: $13,388.00 Total Cash Needed: $36,250.00 Cash on Cash ROI: 10.76% Purchase Cap Rate: 10.38%

If you're at the point of looking at props for purchase (as opposed to just generally 'talking' with them about their product) then you should have received a spreadsheet or other specific pro forma ROI calcs for any property you conveyed interest in.

@Caleb Heimsoth You can use what is called the 50% to run a preliminary estimate of expenses on potential rental purchases.Ex; House rents for $950 assume that you will need to spend $475 to operate said property every month.This is of course just an estimate as there is always an unlimited number of variables at play which will cause your property to perform better or worse than any pro forma at any given point in time.

A partner and I are purchasing a property and plan to form a LLC, and I have the same questions. 

But if you are talking about a unstabilized or low vacancy property, they generally are giving you the pro forma, which just means what the property should perform at.  

Monthly Income: $2,850.00 Monthly Expenses: $2,203.34 Monthly Cashflow: $646.66 Pro Forma Cap Rate: 7.64% The 2 family has lower cash flow ($300) and don’t want to touch.What would you say is the most financially sound way to tackle these two goals with the assets mentioned above. 

Not sure if these two are B or C, but they are next door to each other....Both, by the way, overstate the pro forma rent by 20%http://www.loopnet.com/Listing/20019249/1102-E-Mar...http://www.loopnet.com/Listing/20145014/1010-E-Maryland-Ave-Phoenix-AZ/

I'd ask where the numbers came from, whether they are pro-forma from the broker or actual numbers from the seller.We use a mix of both in our marketing packages.

You could include sample pro-formas or templates to let them know how you will be assessing a deal to see if it makes fiscal sense.

Speak with some local RE agents and try to form a partnership with them, ask them to do BPO's for you at no cost and you will forward your "listing leads" to them at no cost (you can't get paid for them anyways if you are unlicensed).