If you form a C corp and it makes money the C corp will pay its own taxes on it's profits, you will not make any of the income, but when you finally decide to start taking money, you will be taxed on all dividends as well as the C corp. 

We have to come up with the pro forma numbers for financial statements of a start-up company and we chose Property Management Company.

I see too many pro forma's with numbers like 6% or 8% vacancy.

You and that person could form a partnership, (speak to a RE Attorney to structure this properly please) add you to the title and take out a small loan in both of your names through the partnership, in 2nd position behind the 1st, using a private lender/hard money lender  in your area. 

I have seen the pro-forma and it appears that there is no cash down required, but a completed set of construction docs and some fees totalling about $500K.

I was wondering to start off do I need to form a LLC or not i'm confused on that.

Estimated repair costs: 10,000 Total Cost of project: 365,500 ARV: 250,000 Monthly income: 8,750 Monthly expenses: 6,583.21 Monthly cashflow: 2,129.72 Pro Forma Cap Rate: 11.19% NOI: 40,889 Total Cash Needed: 86,300 COCR: 29.61% Purchase Caprate:11.72% ARV is low.

I recently sent a financing request package on a multifamily building to a few lenders and included some basic information on the property, some pictures, my plans for renovations, general market information, and a pro forma/financial projections.

You should include these costs in your Cap Rate calc - don't take their pro forma stuff.

I’m also including link to follow-up articles that he wrote. https://www.biggerpockets.com/renewsblog/2015/03/03/why-you-cant-make-money-on-30000-houses/https://www.biggerpockets.com/renewsblog/capex-include-pro-forma/https://justaskbenwhy.com/2016/03/31/how-much-capex-do-i-need-for-real-estate-investing/3.