Essentially what you are considering is pro forma investing - buying something based on what you or what someone else thinks might be the best possibly scenario, and this is purely speculative at best.

Another trick they do is say property management free for 1 year, 8% for year 2 and on the pro forma show you make $200/mo cash flow with ppt mgmt at 0%.

To restate a post form a different thread, you can sometimes get as big a boost (or bigger) to you effective monthly cash flow by paying off debt you already have like car or student loans.  

Looking to form a partnership with another newbie investor in my area.

If you do a detailed pro-forma P&L, you'll see you'll make about 15-16% of the ARV in profit.

Brian, based on your response and @Gordon Cuffe's response, it sounds like I should be shooting for a pro forma cap rate of ~6-7%.

Also, make it clear you are not interested in pro formas and will only be offering based on actuals.Hope this helps.

The following are the factors that, in my experience, are most likely to lead an entrepreneur to form a corporation rather than an LLC:An expectation that outside funding will be sought, especially from institutional investors (venture capitalists, in particular, tend to invest only in corporations).

If it is <75 days, then the problem is most likely the property.I would first suspect your numbers - especially if they come from the rose sales pro formas folks like to publish.

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