In my opinion, they bought buildings in pockets with a history of horrible rent collection, but when you do a pro forma rent collection on paper, they look like a gold mine.

I have just recently  been receiving emails from banks and lenders I reached he'd out to three years ago that are now offering NR lelending and I have be just started to get more information form a number of them .

I have 1 property in MA where i reside and will be closing on a second one soon and I am starting to look into LLC.The first property has my name on it, and want to quit deed it to the llc once formed.The second property will be acquired with a partner who is bringing in a very small amount of cash into the deal.Here is what I am thinking for structure:--1) Form a Single memeber WY Holding LLC with just me on it.--2) Form a multi members MA LLC owned by the WY LLC and my partner(he will have a very small percentage) This LLC will house both properties--3: Once  I raise enough cash, I will buy him out and get him off the MA LLC that has those 2 properties.

The key thing to consider is that your projected returns in your pro forma are always going to be too high for low-income, so while it seems like you're getting great returns for low cost to acquire, they never net out so well because of high repairs and maintenance and lost rent.In one property, I bought it vacant and put brand new builder-grade everything in it.

Also, it's better if I form a LLC in AZ?

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

I'm using LegalZoom to form a Multi Member LLC for the purchase of the properties.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

A good mix of equity and cash flow will give you experience and perspective that will help you form a strategy in the future, but if you start with too much leverage and not enough cash flow, you'll be handicapping yourself from the get go.