================================================================================Scenario 1 - Current State OperationIncome:Gross Potential Rent ($220/month lot rent x 36 lots x 12 months):  $95,040Vacant Lots (8 vacant lots (6 vacant POH's, 1 manager lot (assuming no rent collected), 1 storage home) x $220/month x 12 months):  $21,120Economic Vacancy (10% of net rent - 10% x ($95,040 - $21,120)):  $7,392Collected Rent (Gross Potential Rent - Vacant Lots - Economic Vacancy):  $66,528Operating Expenses:Operating Expenses (Assumed 50% of collected rent due to a) owner paid utilities b) POH repairs):  $33,264Net Operating Income ($66,528 - $33,264):  $33,264Value of Park Based Exclusively on Lot Rent @ 10% Cap Rate:  $332,640Value of Park Based Exclusively on Lot Rent @ 9% Cap Rate: $369,600Assumed Value of 23 POHs on RTO Contracts (you'll need to find the value of the remaining balances due on these POHs; I've valued the POHs under purchase agreements at 50% of the remaining balance of $10,000 per home):  $115,000Assumed Value of 8 Vacant POH's ($2,000/home):  $16,000Total Estimated Value of Lot Rent and POH's @10% Cap Rate ($332,640 + $115,000 + $16,000):   $463,640Total Estimated Value of Lot Rent and POH's @9% Cap Rate ($369,600 + $115,000 + $16,000):  $500,600================================================================================Scenario 2 - Improved OperationsImprovement Assumptions:Raise lot rent $20/month to $240/month (assuming market can support this)Reduce operating expense ratio to 45% of collected rent through utility bill-backs or other methodsFill 4 vacant POHs with lot renters (assuming market can support this)In general, it's best practice to buy based on actual operations (scenario 1) but it's helpful to see whether you may be able to meet your return criteria by creating a pro-forma.  

Hi @Alisha Decoteau,You should request ACTUAL (not pro forma) rent rolls and actual expenses for the last 12-24 months if you can get them. 

States where you can form a Series LLC (courtesy wikipedia.com):Delaware (Limited Liability Company Act)IllinoisIowaNevadaOklahomaTennesseeTexasUtahWisconsinThere are also some states that will recognize a Series LLC formed in another state, but not offer the formation of one themselves.

The cash flow's in Year 1 are not pro-forma.

Banks aren't going to fund 10% NOO deals.They did when markets were on fire and properties appreciated like crazy and nobody saw any risk.Today they have a bunch of junk on the books they are still clearing out for years to come unless they are a new bank which started in the last few years.Even if that's the case they will be prudent in amount down to have safe margin loans in a still declining market for most areas.Data shows when it gets tough investors will let properties go everyday of the week,If a value declines on a 10 percent down investor loan it will not be enough to cover foreclosure proceedings,attorneys fees,selling the property,trash out,eviction,non loan payments while trying to foreclose,deterioration of property while you wait to sell it,agent commissions and on and on.It is is easy to see that banks would take a bath on putting just 10% down on an NOO loan.You need to define if you are wanting a flip or a long term hold.Even if you can find a 10% NOO form a private party you will not like the rate.

The ultimate goal is to find a CPA to form a long term relationship with to help my along my Real Estate Investing career, and make them and me lots and lots of money.

@Chelsea ShapiroHow to write a pro forma that is actually realistic.

Obviously you don't need a license to form a good network of real estate agents and investors but it's definitely another network.

@Shannon Sadik not sure the size of deals this lender you mention has been involved with.If you are looking to form a syndicate and target large assets with non-recourse financing, your work around with this lender is to form an entity structure (I prefer LLC's formed in Delaware) where he is an equity partner.

We are budgeting conservatively on our pro formas, but to their benefit, they will be self managing which saves a considerable amount as a line item.The reason we are comfortable taking these terms is they will be making a very small down payment (FHA or 5% conv) so we are not overly-worried about having to liquidate the capital in a down market.