The loan payment was derived where I need it to be so I can have a cash flowing rental and getting full equity with every payment I make.

One of most effective uses of cap rates is the Band of Investment (BOI) approach because it allows an investor to derive a cap rate based on his/her desired return.

Unless you are in a hot location where there is considerable appreciation you have to face that cashflow is the ONLY benefit you can derive from this deal. 

You will divide the NOI by a Capitalization Rate (Derived from the market and sales comps you analyze).

Feel free to check my math or ask for a derivation. 

It's a solid cash flow AND appreciation market, with significant demand derivers. 

@Dalion Baskerville If you're interested in buying, find out the Net Operating Income (NOI), derived from actual income and actual expenses.

It's not about the structure of the company (whether an LLC or something else), rather it's about each person's role, involvement, and how they intend to derive profits.

Hi Anthony.The value of your portfolio is based on what the highest bidder would pay for it, so this could be FMV, or it could be derived from an income approach, though, FMV and highest bidder are one and the same IMO.Having income models is great to justify FMV but marking up the value of an asset beyond the valuation the market would peg to it is not what I'd consider a fair and honest dealing between you and your partner. 

@Anderson HargroveMixed-use properties are considered commercial properties and the value would be derived from the cap rate and the net operating income.