Overall, I walked away impressed, but neither the pro forma nor my leveraged estimates gave me a clear CoC Return that was strong enough to jump.  

Hoping all of the experts on here can help.When it comes time to divide the profits, is it possible we could form a LLC along the way to dump the profits into?

Peter has been reporting his rental on his personal Sch E, and so have the other 2 people with their respective rentals.Now, years later, you want to form a PPM LLC and start treating all 3 properties as owned by the LLC, resulting in an equal 3-way ownership of all 3 properties.To answer @Ashish Acharya - unfortunately, I have dealt with this scenario, more than once.

A professional service firm that advises a taxpayer just starting out to form a C Corp is doing the taxpayer a large disservice.If you're willing to spend $2,700 on professional fees for consulting at this point in your career, you can get much better advice from professionals who listen to what you're doing and want to hear your goals, then recommend a legal entity structure and/or a tax entity structure that is actually beneficial to you.My practice has found that under the TCJA:-C Corps rarely make sense and the best arguments for them over S Corps are usually qualitative rather than quantitative.

My question is: What would be the correct way to form a partnership with capital investors?

Did you form a series LLC?

Sounds like you need advice form a cpa familiar with real estate investments.

LOL You are starting a "fund".A popular SEC lawyer that I've heard speak, has posted threads here on BP is Jillian Sidoti: http://www.jilliansidoti.com/She's the cheapest I've heard for setting up your "fund" LLC, PPM, subscription agreement, operating agreement, etc.Just google Jillian and read her stuff on the net.Just mentioning, if your group plans on never soliciting funds from other folks you currently don't know, you could form a partnership or a per project JV.

I don't think there are too many investors who are going to JV or form a GP to buy houses.

However, to start, I always recommend that you speak with some of the top REO brokers in your area (when I say top, I mean those who regularly have 20+ reo listings each month), form a relationship with them, and show them how you will make THEM money!