Also, I will need to form a corp for this so I can retain earnings in the business without giving it to uncle sam.

What would the costs be to form a SP?

You should form a relationship with an appraiser like we have.

If you cannot find a group, form a "mastermind" group that meets for breakfast once a week.

My advice would be to speak with an attorney and discuss if you can form a partnership with your relative and create a legal situation to achieve your goals.If that is not the case, or if there is not enough time, then Jon's suggestion of a "Deed in Lieu" might be your best option.You made the mistake of jumping into a deal without securing your back end financing.

Everyone around here is still asking 7-8% on retail centers, pro-forma of course.

Loan/pro forma looked like this - purchse price on prop 135,000.0025% equity + closing costs (in money) +/- 35,000repairs loan = 55,000 (vandals got the pipes and it needed a few things)repairs costs = +/- 25,000 (balance to me as pay for management and painting and other little stuff)current monthly payment is about $750 per mo interest only until the 2 mortgages roll into one in Oct '09.

What kind of statements do you need to present – tax returns or more detailed pro forma statements.

When I went to the bank for my commercial loans using my cash out refi from my home, I had along with all the usual financial stuff like Tax forms, P&L, a pro forma and a business plan.

This leaves $13000 for PITI, which, according to the seller's old pro forma we were given, was approx. $10,500/mo.