I'm going to form a LLC.

It was the same type of call but this time I was armed with motivated liquidity.Ongoing Timeline1/7/2018 - We started reviewing every property as they came in, ran our own pro forma (Google Sheets), neighborhood analysis (Google Maps), and comps (Redfin, Zillow, Trulia).

The optimal spreadsheet would include pro-forma projections of all expenses and expected re-sale value of the home.

For example, let's say my pro forma uses the following assumptions, excluding any vacancy:Monthly Rent: $2,000Monthly Expenses, excluding mortgage: (Taxes, Insurance, HOA, CapEx, etc): $1,750NOI: $1,550Mortgage Payment: $1,300Monthly Cash flow: $250Now if we assume a 5% Vacancy Rate = $100 and include it as a negative revenue, NOI Margin (NOI / Income): 76.3%Cashflow Margin (Cashflow / Income): 7.9%Gross Rent Multiplier (Property Value / Annual Rent): 7.242% rule-of-thumb (Income / Purchase Price): 1.15%50% rule-of-thumb (Total Expenses / Income): 23.7%If we instead assume the vacancy rate is an expense: NOI Margin (NOI / Income): 72.5% Cashflow Margin (Cashflow / Income): 7.5%Gross Rent Multiplier (Property Value / Annual Rent): 6.882% rule-of-thumb (Income / Purchase Price): 1.21%50% rule-of-thumb (Total Expenses / Income): 27.5%I realize it may not seem like a material difference in this example, but I imagine in some scenarios it  could lead you to make different decisions just based on how it's classified.

In short, Ill take conservative and realistic (singles and doubles) all the time over the home run pro-forma thats sure to crash and burn (well maybe not quite that bad, but I do like to hear 'good news' and have my team under promise and over deliver rather than make excuses for promising a huge win and delivering sub-par performance).

It's all about helping you understand the investing landscape so you can form a winning strategy in any market conditions. 

He also sent me a pro forma.

I am not saying that you or your partners are qualified to form a corporation.

I will say that I'm beginning to form a stigma against high rises.

If you decide to throw up a vacation rental out in the sticks then you're looking at an entirely different pro forma.