These tend to hold more water than some Pro-Formas or Loopnet listings coming from the seller.  6) The Formula.  

They want to form a new entity to hold the property in which it will allow for a future sale of the property where my mom can 1031 exchange her portion and my uncle can cash out.

Rent averages $600/month/unit ($172k per year pro forma total).Seller has provided rent rolls from the past 5 years (2011-2015) and I have reviewed them.Seller is asking for about $56k/unit (1.4million for the 24 units)Roof is about 7 years old. 50% of HVAC were changed in the last 5 years.Below are some hard numbers from the seller.

Alexis Guerra in Texas you should use the standard TREC form as it is the one most title companies use.

Concurrent to that, I'm working to build a team of my own on the ground in the same markets they operate in (realtors, property managers, inspectors, etc) to see if I can match or beat the pro formas that I've received.

Unless you are either fully equipped to handle these tasks or are able to form a team between now and then I would highly recommend Hiring the Management out.

Form a meetup.

In regard to the discount rate for a DCF pro forma, understand that the purpose of the IRR calculation is to find the exact discount rate that would make the present value of the future cash flows equal to what you paid for them.

If you use a water based acrylic caulk it cleans with water so you can form a beautiful bead with nothing but a wet sponge.

If you could do that, you'd make millions and never have to buy any property.I believe Brandon mentions that it's a therory and not an expectation or guaranteed method, but a means to a plan.Any time you are dealing with projections of value or income, pro forma statements, your guess is only as good as the data it's based on, usually the more conservative the closer you'll be to actual performance.