6 unit discussion

[Eric Schrader]

BP

I am looking at purchasing a 6 unit appt bldg.  Consist of 4 2/1, and 2 3/1 units.  This bldg is in a historic district, walking distance to shops, restaurants, and the water.  The current owner has included a good number of discounts to long term tenants.  Currently, 5 of the 6 units are rented for somewhere between 800 - 900.  This monthly amt. includes water, heat, etc.  Electric is metered separate.  The rent is low based on similar sized units in the area.  Anywhere from $200 to $400/ month, this doesn't include having them pay for their own water/ gas (if that is possible). 

i am still in the discovery mode for the actual $ values for the monthly  expenses.  The price has been dropping for the past 14 months or so, down 110k.  They recently had a deal fall through.  Based on my calculations (and a bunch of assumptions) i have the property valued at around 300k.  They are asking 439k. 

so to my question, area of this appt is a strong B to B+ area, historic, 2 blocks from the water.  How does this location effect the house pricing?  Listening to all the folks on BP, I should be purchasing the property base off its current value, not its future value.  Right!!

Thanks all...