The list price is $400k higher than the calculated value of $1.5M… likely because the current owner sees the growth potential in the pro-forma numbers.

I have seen a lot of pro forma documents that say “rent at market - operating expense / cap rate=X value” when rents are clearly below what their calculation entails and operating expenses are likely more. 

What I'd also be be asking (well ahead of time) is to see a copy of a pro-forma on the subject property.  

Should I form a business structure for this for legal or tax purposes, other reasons, etc.?

BusinessRocket is a leading business formation company that handles all business entities such as corporation, LLC’s, DBA’s and many more.

The reason you form a business entity has everything to do with your goals.

I'm guessing their pro forma 18% "promise" is annualized, Meaning that it would be only 9% for this one project.

Going too far on aesthetics and still having below market rents does very little for value except make your pro forma look better. 

You must Know how to form a proper corporate that had 5 tradelines, pay dex, and must be reported to D&B to maintain a 80 Business Credit.

Wayne, thanks.Are these fees typically spelled out in page 9, item 20, line 479 of the FAR/BAR AS IS residential form as a line item or is there an additional fee addendum?