I'm trying to form a stronger relationship with a local bank.

I would venture to guess in 6 months or so you will see supply coming from the hurricane and if you want to do heavy lift renovation you could end up getting really good cap based on pro-forma

However, it is becoming similar to the Bay Area with investors buying on pro-forma's with low cap rates while banking on appreciation.

The plan is to form a "parent" LLC*, then "subsidiary" LLCs in each state where I own properties.

When the turnkey Operators provide pro formas with 1-2% for vacancy and 1-2% for maintenance...it will show positive cash flow.

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

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.

Looking to form a partnership in southern California and would like to learn from others as to the best/most economic process for getting a solid contract in place.  

Here's what I mean- by self managing and not factoring that into your pro-forma, you're achieving 1700/yr in cash flow, or "profit" as I would consider it here.

So, pro forma whatever...