Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

They will be instrumental in telling you where to build, how many residents they can handle, and also will give you more accurate estimation on the actual budge to make your pro forma with. 

So I suggest getting a ‘best guess’ figure based on several sources (Airdna, Rabbu, STR Insights - don’t rely on just one) and then build in some conservatism and see if you are still comfortable what your pro forma kicks out.

@Keith Boley @Salim BhuiyanYes, I would use them again, and recommend the DST.I think it is the best method of asset protection for someone who holds a self owned portfolio, especially as a California resident.Royal legal has had growing pains like I mentioned, but they are fair and the best at the DST used in this fashion.Like I mentioned, once you form a relationship with one of their attorneys, you have a point of contact and not messing with their outsourced answering system.For example, the Attorney I am in direct contact with at Royal Legal is extremely personable, knowledge, and timely.

So, your after tax proceeds will be $5.5M to $7.5M. 3) You must form a hypothesis about what good looks like for this portfolio, on your own.

I would just form a simple LLC in your state (possibly using LegalZoom or a local attorney) and you can always make it more grandiose later on.  

Shawn - I would suggest you develop a pro forma based on the stabilized state of the property to understand if it cash flows once all units are occupied being sure to include all reasonable revenue assumptions (rents, vacancy factor, etc..) as well as expenses (debt payments, maintenance, utilities, property management, taxes, insurance, turnover costs, etc..)

I downloaded the BP rental contract for MA and read something about providing lead paint disclosure/pamphlet.

Given the unfavorable analysis of population within 3 / 5mile radius, the numbers were too appealing.Lastly, the current owner is valuating the asset on pro-forma basis and I know for a fact with needed capex and upgrades, I will be overpaying.  

Josh - I think the exercise that would be good to go through is to develop a pro forma showing your current revenue/expenses/income as well as a projection for future years.