Monthly Income:$1,150.00Monthly Expenses:$750.72Monthly Cashflow:$399.28Pro Forma Cap Rate:7.32%NOI:$9,156.00Total Cash Needed:$30,000.00Cash on Cash ROI:15.97%Purchase Cap Rate:9.16%Total Monthly Income:$1,150.00x50% for Expenses:$575.00Monthly Payment/Interest Payment:$363.72 Total Monthly Cashflow using 50% Rule:$211.28

Entering in all of the pro forma data for every multifamily property would take forever, so I am going to implement the 50% rule in order to weed out the good from the bad.  

After my retirement I worked with a group of old friends I meet back at the bank to form a small investment group.

I'm new at this but looking at multis and the first thing that caught my eye was the pro forma numbers.

I'm currently negotiating for a package deal of REO properties form a lending institution and I'm having my contractor do a lead inspection HOPING and PRAYING that those properties have lead so that this lending institution will be ready to practically give these properties away.

If you are just going by the pro forma data, you can see properties that have 15-plus cap rates.

At this particular point in my life, I am not going to be the one who has the money to put up big down payments for properties (students loans), but I am attempting to form a team that would be willing to work together to make our collective dream happen.

You can do a pro-forma P&L analysis using market rents and estimate your expenses.

The broker shows the taxes in his pro forma as $201,792.  

Were there not enough interested owners to form a board?