Trying to come up with an offer price

[Grant Ed]

Hi all. We are looking to purchase a mixed use property northern NJ. Asking price is $700k. Gross rent is $6/mo, greatly under the market rate. Operating costs are $3.5k/mon (including property tax, insurance, utilities, 5% vacancy, 5% repair, 8% property management, not including capex or P&I). The property needs s lot of TLC. But in a up and coming prime location, close to train station. There is a lot of potential. We think $590k is okay. As we can put in $50k to fix up the place and increase rent to $7.7k/mo. But we are not sure if we have missed anything. Can we go higher with the offer price if seller counters? Any advice will be appreciated. Thank you. Grant