Most sellers in Orange County use pro forma numbers to determine selling price and lots of renters are long term renters so the numbers are low.I do see what you are saying, it is less risk to use current rents to calculate actual cap rates.

He provided with with the pro forma numbers, I just found out.  

Great first step to learning and investing.Check out BP's Ultimate Beginner's Guide, it helps to form a general foundation in the industry.

I would appreciate any input on this subject so i can start to form a more clear long term investing goal for myself.Thanks, Jonathan 

We JV'd with someone form a different country!

Here are the numbers -Purchase Price:$112,900.00Purchase Closing Costs:$4,000.00Estimated Repairs:$3,000.00Total Project Cost:$119,900.00After Repair Value:$135,000.00Down Payment:$22,580.00Loan Amount:$90,320.00Loan Points:$0.00Loan Fees:Amortized Over:30 yearsLoan Interest Rate:4.750%Monthly P&I:$471.15Monthly Income:$1,250.00 Monthly Expenses: $978.24Monthly Cashflow: $271.76Pro Forma Cap Rate: 7.44%NOI: $8,915.00Total Cash Needed: $29,580.00Cash on Cash ROI: 11.02Purchase Cap Rate: 7.90%This house needs a few repairs, most notably is the mildew/ mold in the upstairs bathroom, a garage door that is off its tracks, a broken window, a missing mirror, and some carpet that needs to be replaced.

So long as the partner is not a disqualified party to your plan, the plan can absolutely joint venture with another investor.Whether you form a LLC together or simply hold title jointly as tenants-in-common will be a discussion you will want to have with your attorney or CPA.  

Once you meet folks and can form a give-and-take relationship (meaning you don't just take...you find a way to be helpful) you may find doors open for you that you cannot see right now.  

This property is listed for $1.78M and has 3 long term retail tenants on the 1st floor, and has 9 out of 13 office units leased on the 2nd floor (all currently month to month).I have some fairly specific questions regarding Income Statement pro forma assumptions, Cap Rate, and financing.

hello, im a hvac /plumbing contractor and have done rei in the past and present. here is my idea and question. we have a property free and clear that  is 3.5 acres with income of $2500.00 of rent per mont on 4 old buildings. we did a market analysis and plans 3 years ago to build 72 apartments. everything looks good as far as zoning and city permits. the budget was 3.2M the property itself is worth 450k and the bankers gave us green light.we didn't move forward with it because os the risk of it, we forecasted that we would end up owing more than 2.5 M and we did not wanted to risk that much by ourselves. 2 years ago someone built 30 apartments lest than .5mille away from the property and they have 75-80% occupancy already.talking with my wife we come up with this idea, since we know construction business owners on almost all the trades and have done business with them and a person familiar with apartment building construction on the past. we would like to form a partnership with couple of them where they can own part of the business in exchange of their work (trade) and if any one wants to be more involve and want to put hard money their % would be more.do you think it can be done any legal issues?