My rough, back of the napkin estimates are below and based on quick internet research:- 40 - 2/2 units that are each 1,000 sq ft for a total of 40,000 sq ft- $100/sq ft building cost x 40,000 sq ft = $4,000,000- Land purchase of $500,000 plus ground improvements of $500,000 (parking lots, gates, fences) brings the total capital needed to $5,000,000- Assuming we raise 20% down ($1M) we would need to finance $4M- Assuming an $800/mo average rent we would gross $384,000 per year on a pro forma basis- Assuming 35% for all expenses other than debt service (management, insurance, taxes, utilities, marketing, vacancy, repair & maintenance) that results in a NOI of $249,600- Assuming 30 year amortization at 4% interest on $4M the annual debt service is $229,200All that only leaves a possible $20,400 profit at the end of the year on a $5M investment.

Secondarily, looking for advise how to properly handle the form a tax perspective?

I will reach out to you to form a relationship and let you know what I find while marketing for motivated sellers.

Hello everyone,I trying to get some recommendations to form a list of property managers to contact for my SFH rental property in the Raleigh

You may know rents can be increased at turnover and you may include that in your pro-forma analysis, but only offer  based on what they are bringing in now.  

He'd then need to file a W8 EN form as well.  

Should I form a LLC before buying?

The longer the economic period the more comprehensive the valuation can be and probably should include the future sale or disposable or even a salvage value being brought back the the present value together with the stream of income.You will need to construct pro-forma statements building your best estimation of income and expenses for a vacant property where actual numbers may not be available.

Devan, it sounds as if you may want to investigate the property further before preparing a pro forma.

This GRM seems high from an investment perspective but seems to be the norm in the current climate, especially in Portland where I've seen GRMs as high as 17.What has made this a bit more difficult is that the agent I've been working with has not been able to provide rent pro formas for surrounding properties so I'm manually evaluating the rents through Craigslist, Rentometer etc. to see if there is room for an increase.