@Parris EdwardsMarket CompsEconomic IncomeKnowing what the expenses should be for that particular marketContractor labor costand NEVER use pro-forma numbers given to you from the seller

Strongly agree with Jason here- run your own pro-forma.

The thing I find interesting is that you have to form a partnership or corporation to invest the capital gains.

CapEx is included, but is considerably lower because it's a very new, excellent condition property (I considered things such as paint, appliances, flooring that would be needed while we still own the property).Purchase Price $350,000Purchase Closing Costs $1,300Total Project Cost $351,300ARV $350,000Down Payment $12,250Loan Amount $337,750Amortized for 30 yearsLoan Interest Rate 4.6%Monthly P&I $1,731.46Total Cash Needed $13,550.002% Rule 0.85%Initial Equity $12,250Monthly Income ($1500 per unit) $3,000 Monthly Expenses (Including CapEx) $2,607 Monthly Cashflow $392 Pro Forma Cap 7.28% Total Cash Needed $13,550.00Cash on Cash ROI 34.73% Purchase Cap Rate 7.28%Est Vacancy $150PMI $200Est CapEx $63Insurance $80P&I $1,731.46My only major concern is that I'm not meeting the 2% rule (and just short of 1%, even), but this is probably the closest property I've seen, and has a significant cash on cash ROI.

I consider that to be a very naive and kind of a lazy way of doing financial calculations.So I really would suggest all Investors do at least a 10 year pro-forma projection business plan.

The property is currently generating between $2500 - $2,800 monthly but we estimate the pro forma income to be $3500 once offices and RV spaces are leased.

I definitely think that if cash flow is there (have a good pro-forma) then you are better off using the cheap money for a much higher return. forget SFR's, especially in your market lol.

I would source the property, work-up the pro-forma and do a preliminary analysis.

If so, is it enough to provide two pro formas: one showing the current rent roll and proposed purchase price and one showing the projected rents upon full rehab?

I am an active investor in the area, and I'm hoping to form a relationship with someone interested in working with me repeatedly on numerous similar projects as they come up.Some things to note: I live in California, so must be willing to work with someone remote.