How much would you pay for this deal?

[Kody King]

What would you pay for this deal? I primarily invest in SFHs but an opportunity has come up to purchase a commercial property with rental units and the owner wants me to come up with a price...

The property has three retail/business spaces and 7 apartment units. The financials are as follows:

Monthly rental income: $7835

Taxes: $954/month

Utilities: $416/month

Insurance: $329/month

I'm projecting 7% vacancy, 5% repairs, and 10% cap ex. Are these reasonable estimates? 

I would say it's a class C rental, on the lower end for the area and will probably see more frequent turn of tenants. 

I will likely finance the property at 80% LTV and the property will need to cash flow...

The price that the owner thinks it is worth is much higher than I feel I can pay. I'd like to be able to cash flow $1000/month and have 12% cash on cash return. Here are my numbers:

Income
Rent	7,835.00
Expenses
Taxes	954.00
Utilities	416.00
Insurance	329.00
Vacancy	548.45
Repairs	391.75
CapEx	783.50
Mortgage	3,151.10
Total Expenses	6,573.80

How much would you pay for this property based on these numbers?