Multi unit for sale, how do I value it?

[Ronda Bogdanovic]

Hi everyone, I need help figuring out the valuation on a multi unit apartment complex. It's a 26 unit built in 1955. 14 units have been remodeled at a cost of $100,000.  Asking price is $1,350,000.

Income from rent is $12,332 a month. Taxes are $8167 a year. Insurance is $987 a month. Owner pays for the water. Grounds maintenance is $500 a year. I'm looking at it tomorrow but after looking at the financials I'm thinking it's not a good deal. 

The numbers they gave me are

Total Income  = $76,792

Total expenses= $61,161

Net income=  $15,630

They show a interest payment a month of $3633 but are not accounting for any other loan. Also they are paying a management company $1092 a month. I would manage it myself.

What do you think? Pass? Hoe should I figure the true value? Do I base it on cash flow only?

Thanks in advance!

Ronda