Ok, now for the numbers.Currently Rented: $500 for 1 bedroom $600 for 2 bedroomsPro Forma Rent (After Rehab): $700 1 bedroom $750-800 2 bedroomsUnit Mix: (12) 2 bedrooms and (8) 1 bedroomsRehab (Estimated): $150kOccupancy: 30%Taxes: $10kInsurance: $7kNotes: No rent roll & no P&L statement for YTD nor past years.

Form a company for other advantages that make it easier to do business than attempting to privately.

If you form a LLC, have both of you be members of it.

You can go through almost any bank for an FHA loan so I would go with a local credit union to form a relationship with them if you can.

Expenses look low too, but somewhat more realistic than most pro formas I see.

If you have enough profit, then you may be able to convince a syndication company you know or get to know, to form a TIC or DST on their acquisition. 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I think you need to re-run your pro forma, apply that cap rate, and see what kind of value you come up with.To pick up on @Brian Anderson's points:2% Vacancy is very low.

Also my new property manager provided rental comps and suggested to reduce rents by $50 - $100 per month which also impacted my ACTUAL return compared to their pro forma.

I only have a couple rentals for now but would like to form a relationship with a good tax accountant for the long term.