Look at this Apartment complex in DFW

[George Smith]

Maybe someone can help me with this one. I know the seller is asking way too much and I am just playing with the numbers. How much should I offer if I want a 8% return COC:

It is 201 Main street, Little Elm, TX, 24 Units complex. Anyone in DFW area and investing in apartment should know this one because there are only a very few on the market in the entire DFW area.

Build in 2000, tax office value 750K, asking 2.5 Ml.

Only information the seller willing to provide is

Current Monthly Rental Rates:

1 BR, 1 Bath 650 sq.ft : $715 Plus Electric & Water

2 BR, 2 Bath 840 sq.ft : $895 Plus Electric & Water

2 BR, 1 Bath 720 sq.ft : $795 Plus Electric & Water

3 BR, 2 Bath 1040 sq.ft : $1050 Plus Electric & Water

Income: $21,181 /Month

Expenses:

Water, trash and sewer is $1,375 / month

Electric, $300 / month

Alarm, 100 / month

Phone, $50 / month

Taxes, $5,700 land and $15,400 improvements

Wear and tear, maintenance, $650/month

Insurance $500/Month

And he claim the cap rate is 8%