I was not surprised to see the updated form, as I know they have a BIG mess to clean up. 

@Shawn York you could certainly form a new company and buy the lien in that entity.

I recommend investors seek out a 10 cap using a REALISTIC pro forma.

We ran the numbers on a nifty estimation spreadsheet I built: Purchase Details Financing Details Purchase Price $ 90,000.00 % Down 25% Esitmated Closing Costs $ 1,000.00 Down Payment $ $ 22,500.00 Estimated Repairs $ 33,984.00 Loan Amount $ 67,500.00 After Repair Value (ARV) $ 145,000.00 Loan Points 0 Total Project Cost $ 124,984.00 Loan Fees $ - Potential Upside $ 20,016.00 Amortized Over (Years) 30 Interest Rate 4.75% Total # of Payments 360 Monthly P&I $352.11 Total Cash Needed to Close $ 57,484.00 Cash Flow Details Income Future Assumptions Unit 1 Monthly Rent $ 850.00 Annual Income Growth 2% Unit 2 Monthly Rent $ 850.00 Annual Prop Value Growth 2% Unit 3 Monthly Rent $ - Annual Expense Growth 2% Unit 4 Monthly Rent $ - Sales Expenses 7% Additional Revenue $ - Total Monthly Revenue $ 1,700.00 Expenses Expense Forecasts Insurance / Month $ 100.00 Vacancy Rate (%) 5% Monthly Taxes $ 91.50 Maintenance (%) 10% Water/Sewer $ 69.70 Cap Ex Savings (%) 10% Waste Removal $ 57.08 Property Management (%) 10% HOAs $ - Vacancy Rate ($) $ 85.00 Electricity $ - Maintenance ($) $ 170.00 Other Monthly Expenses $ 50.00 Cap Ex Savings ($) $ 170.00 Description of Other: Lawn Mowing Property Management ($) $ 170.00 Total Operating Expenses $ 963.28 Net Operating Income (NOI): $ 736.72 Total Monthly Expenses: $ 1,315.39 Monthly Cash Flow: $ 384.61 Summary Monthly Income $ 1,700.00 Monthly Expenses $ 1,315.39 Monthly Cash Flow $ 384.61 Annual NOI $ 8,840.64 Purchase Cap Rate 9.82% Pro Forma Cap Rate 6.10% Total Cash Needed $ 57,484.00 Cash on Cash ROI 8.03% Rules of Thumb Total Monthly Cash Flow using 50% Rule $ 497.89 1% Rule (Revenue >1% of purchase price) Pass 2% Rule (Revenue >1% of purchase price) Fail Monthly Revenue as % of Purchase Price 1.89% Note – numbers above assume refinancing, maintaining 25% equity.It was immediately apparent upon walking into the unoccupied unit that the “recent renovations” were simply some lipstick trying to cover a pig in hopes we wouldn’t see.

Link for good starter pro forma for your project:https://www.hudexchange.info/resource/729/sample-development-budget-and-operating-pro-forma-for-a-commercial-and/or-mixeduse-nsp-property/Check out HCareers or Hospitality Online, more specialty than Indeed.I am working on the same thing right now, but much smaller, a 26 room motel in upstate NY, vacant and distressed.

Thus I am a bit paranoid about limiting liability should I ever have another awful tenant like that.So I have been considering whether to form a corporation to own my next property.

Bit of a tangent to the OP's question but what I 'love' are pro-forma statements that have no basis in reality. 

A 50/50 split may be fair to you guys.....but I would never be the one putting in the money into a joint LLC.Anytime I'm 100% of the money, I own the LLC 100% myself and just create JVs or profit share deals with any other person I involve.You can certainly form a dual member LLC, or an LLP, but you need very clear operating agreements, corporate resolutions, etc.  

Often I see expenses that appear to be below market, and these numbers are used in a pro forma schedule that reflects NOI above market.

We would like to send a Estoppeal Statement and I have a few questions.Do we need the current landlord to sign this form as well?