Aking Price : $2.3 millionProperty TypeMultifamilySubtypeApartment BuildingNet Rentable (sq ft)13,400Cap Rate6.11%Pro-Forma Cap Rate 6.70%NOI $140,615Units17Year Built192813 1Bed/1Bath And 4 2Bed/1Bath Unitsin New Jerseyappreciate you thoughtsthanks 

I'd say - don't just take their pro forma at face value, make sure you run your own numbers!

Often times, Sellers used what called "Pro Forma" numbers. 

Cap ex is not easy to absorb and the "excel pro-forma"  rarely materializes as reality. 

@Douglas Gratz  1)  if  project is costing 1.5 mill to build and you will have   690K form a  refinance - is the  balance  coming from the hard money source ? 

Would the best practice be to form a new LLC where all four of us are managing members?

Develop the current P&L and then conduct the pro forma estimates in order to truly analyze the property!

Once you form a plan and target the right market and property types you will be acquiring, you can start investigating the property management side of things as that will be determined by the former. 

Did you do a pro forma prior to purchase?  

@Monica C.I've invested in a little more than 10 separate syndications with about as many different leads.The one thing I appreciate the most is those asset manager who are willing to send out monthly charts of actual vs pro-forma income and expenses.That's not to say that they are always within budget, because they usually aren't, but they at least show a level of honesty and accountability as well as showing progress.I'm invested in some deals that publish very few KPIs if any at all.