Then you can form a plan.

Quicker closes, No qualifying, etc. and when you have those deals that work out badly or you take a loss (it will happen), the JV can look pretty good.JV will never look like the best deal in the pro forma numbers but how often do you hit the ideal numbers?

Purchase Price$145,000Down Payment$29,000Loan Term30 YearsInterest Rate4.50%Principal & Interest Payment$588Closing Costs$5,000Gross Scheduled Income (GSI)$19,020Vacancy Rate8.00%Number of Units3Pro-forma Income Statement & Cash FlowGross Scheduled Income (GSI)$19,020Less Vacancy$1,522Total Actual Annual Income$17,498Other Income (Laundry, Late Fees, etc.)$0Gross Operating Income (GOI)$17,498Annual Opertating ExpensesElectricity$480Gas, Water & Sewage$1,200Landscaping$400Maintenance & Repair$1,800Property Insurance$1,800 Property Management$0 Real Estate Taxes$1,700Snow removal$1,000Total Operating Expenses$8,380Net Operating Income (NOI)$9,118Annual Debt Service (mortgage payments)$7,053Before Tax Cash Flows (BTCF)$2,065Key Operating RatiosCapitalization Rate6.29%Cash on Cash (COC)6.07%Gross Rent Mulitplier (GRM)7.62Net Income Mulitplier (NIM)15.90Debt  Coverage Ratio (DCR)1.29Expense Ratio (ER) Per Unit47.89%Price Per Unit$48,333 What do you guys think?

If you want to pay out of pocket for the reno, you can right into a 30 year fixed form a non- Qm lender.

Do you use DCSR to measure profitability or CAPs (pro forma)?

I'm a Realtor (and investor) and I disagree that Realtors can't form a good value opinion.

However, the pro forma will not appeal to a more affluent LP pool outside of Chicago.

Most homeowners benefit from purchase in one form as they claim the Federal Tax Credit, currently 26%.

Some questions: Do you currently self-manage and the question is whether to form a formal company for it?

Biggerpockets.com definitely have pro forma excel spreadsheets that can help.