Running cashflow projections and pro-formas was straight forward since most of these properties could be conventionally financed using 15 or 30 yr fixed rate amortization schedules.I'm curious how other's are evaluating larger multifamily properties using Balloon and ARM loans.  

Me and Alfred (rehabber) started to form a relationship in December right before I got this deal locked up.

The costs of repairs, leasing, turnover, eviction, taxes etc especially for a long distance owner is so much more than the "pro forma". 

Do they have to form a corporation here in the states so I can tax their C-corp?

But if you're completely green, it may be a better idea to save $400 on a cut-rate inspector, and instead pay for 2-3 separate but detailed opinions form a licensed foundation expert, roofing contractor and perhaps a plumber or an electrician.

In some cases it may be more appropriate to form a general partnership for the deal.

Make an income/expense pro forma with conservative assumptions for all of the concerns you listed above.

If my friend and I form a legal entity (LLC), will we be able to get a loan from the bank in that entities name?

Problem with a lot of the out of area investors was they did not have the benefit of buying form a team member on the ground and by the time they paid Aussie marketing company US wholesaler and retailer etc etc. they were already paying 100k or so 2 years ago for the same house you and I bought for 50k..

All the forms are written by MA lawyers for MA landlords so you know your backside is covered.