We mainly work in the value-add space so we will go in and replace the bones of the property including, plumbing, electrical, furnace, ac, and anything else that is at the tail end of life cycle. 

Highly recommend you have a qualified attorney in your state draft the operating agreement.A multi-member LLC taxed as a partnership might be the way to go.Partnership agreements are pretty flexible and "waterfall schedules" can dictate how profit/loss and distributions are allocated during the life cycle of the LLC. 

Your pro forma P&L for the life cycle of the investment5.

Life cycle fund.

The newer nicer buildings look worse at  first but a true realistic pro forma based on life cycles of everything imaginable from carpets to refrigerators to roofs etc, paints a different picture.  

Ideally though, once you find a good potential property and are able to walk it and determine the repairs and age of fixtures and appliances available you'd want to map out all of the replacements using the lifecycle method.

You will end up with tenant transitions during this time period at some point in the life cycle of the property and most properties can't afford that kind of vacancy...it would eat up years of profit.  

I specifically asked them to show me the following:A) Recently acquired properties (pre rehab)B) Properties currently being rehabbedC) Properties that were complete (post rehab)Basically, the entire lifecycle from acquisition to tenant placement.  

My skills are primarily in capital raising, both in terms of debt and equity, and on the financial analysis side of things, and my goal is to keep moving up the development ladder with larger projects, and to achieve better returns for my investors.I'm currently working on a 6 unit project in DC, and I was thinking of doing a "development life cycle" post if there's any interest, where I would periodically walk through some of the daily tasks and challenges that accompany a development project.

That could generate some equity for you.This is part of the Life Cycle Cost Analysis I did on the two scenarios.