Also, I was going to flip within the entity (with myself doing the deal acting as my own sellers agent) and form a separate LLC for any non-flip-related RE commissions on the side.

It appears that even when I'm reviewing the pro formas for properties within a quarter mile of each other the cap rates are very different (up to 2% difference at times).I'm trying to do some pre due diligence before I consider contacting the seller and ask for rent rolls etc. but it appears these brokers are just adjusting the Cap Rates to justify their asking price.Further for most of these properties I'm seeing when I calculate loan payments for the year with 25% down I'm not even close to cash flowing.Am I missing something?

Hi,I am buying a property in PA and in AL.I have already formed an LLC in PA.My question is should I form a separate one for my property in AL?

Deal Stats:Price (Current List): $109,9002 Separate duplex properties on the same lot for a total of 4 units.7 bedrooms 5 bathroomsAll units recently renovatedIncomeGross Monthly Rent: $2,400Expenses:Mortgage: $500CapEx: 3%/mo = $72Repairs: 3%/mo = $72Insurance: $150/moProperty Taxes: $130/moAll utilities are the responsibilities of the tenantsI will be managing the property myselfTotal expenses/month = $924Based on the BP Rental Tool I get the following results:Pro Forma Cap Rate: 21.12%Cash on Cash ROI: 222.05%Income-Expense Ratio (2% Rule): 2.14%Debt Coverage Ratio: 3.97Monthly Cashflow: $1,479.39NOI: $23,734The Market:Where this house is located, 44% of the market is renting vs 33% for the stateThe most popular type of rental is 2 bedrooms, which are 3 of the 4 units in this deal.Median Rent is slightly less than the current rent on these units.  

Agree with @Eric Black, pro forma numbers are typically inflated.

Is there a standard seasonal vacation agreement for MA and any critical laws that I need to know about before I start renting?

I plan on doing many more deals in the northern Texas area and it would be awesome to form a relationship/partnership with someone like yourself.

Those questions will help me to form a more educated opinion.

That is why it is always good to run your own pro forma for every deal.That said the 2% rule is monthly rent / purchase price.

If you do not form a limited liability entity (LP, LLC, or S-corp) then you will be deemed to be a general partnership.