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.

IMO, that's a break even deal at best, and most likely losing if you run an honest pro forma with 40% expenses and a mortgage payment. 

It will help you form a foundation from which to start.  

Yet another reminder as to the misleading nature of really exciting pro-formas...

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

Anything above that magic number 4 will be a commercial loan that will be more flexible in the sense that your group can give the bank the pro forma of the property in question and they will fund the deal off that information.

I would tell him he must form a partnership between him and the other cash investors he has, and that new partnership becomes the partner in the next deal(s).Don't add on any partners with split roles.  

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

If yourself and husband form a partnership vs.

This apt is far from stabilized and it is going for 11 cap using pro forma numbers.