Pro forma I sub-meter the water out so I can bill back the tenants.

So if you form a DE or WY LLC you will pay registered agent fees ($250 - $600 per year), franchise tax in that state (at least $100 per year) plus any other obligations imposed by the state of Domicile.PLUS You will need to pay a registered agent in Illinois and file an IL tax return as a foreign entity (Not domiciled in Illinois) Even if you do not make a profit.Liability - IL Courts will not recognize the privacy or protection you hope to get by setting up in another state.

Another aside, it is true that a lot of areas are tough to cashflow in CA, but be careful with how you run your pro formas.

No pro forma or banking on rates to decrease or any of that.

@Kalen JordanWe do list vacancy rates in all of our pro formas. 

Estimating how much rent I might expect to get based on the number of bedrooms, bathrooms, square footage, area and finishes seems to be an art form. As

: $12,500Interest Rate: 4.2%Years: 30Payment: $455Net Operating Income (and Cap Ex included because my pro forma sucks)Gross Rent: $1900 (Range is $1600 to $2000 for 3bed 2 bath, this is a 1 bath but it's in a pretty good area)Vacancy: $152 (8% - not a rental town)Net Rent: $1748Repairs: $125 (7.2%)Property Mngmt: $190 (10.9%)Property Taxes: $250 (14.3% and these are rising higher and higher each year)Insurance: $80 (4.6%)Legal & Accounting: $25 (1.4%)Other (Emergency, Capex, Etc.): $125 (7.2%)Monthly NOI = $953Cash FlowMonthly NOI: $953- Payment: $455Monthly Cash Flow: $498Annualized NumbersAnnunal NOI:  $11,565Annual Debt Service: $5,457Annual Cash Flow: $5,979ReturnsCash On Cash: 8.02% (I'm looking for at least 8% so this is good)Cap Rate: 7.46% (Again looking for 8% but I'll take it)Please let me know what y'all think!

Find wholesalers in the region, or form a relationship with real estate agents who are doing a lot of deals in the investment space. 

As u get closer shoot me an address and I can get u a helpful revenue projection to build out that pro forma!  

PS Please do not recommend we form a Partnership, we do not need to do so and that is not the appropriate solution for us here.