12 units apartment deal in Virginia

[Olu Efunwoye]

I have a deal I am currently looking at in Chesapeake Virginia, and I would love your thoughts on this:

12 units 1bed/1bath apartment built in 1912 (renovated in 2018). 9536 SF, the asking price is $995,000 at 8.07% cap rate with a NOI of $80,106. The broker is also the property management company, and they believe there is some room for a rent increase. The owners are out of state, and they are selling to move to a bigger deal. The property has been on the market for over a year. According to the broker, the current loan is assumable (the rate is 3.35% or so), but he isn't sure how that works. The sellers may also be open to carrying a portion of the mortgage.

Questions for the BP family are: is this a good deal? The broker has sent the rent roll (in the form of a P&L showing what comes in for each unit and a breakdown of the expenses). How can I negotiate a lower asking price? What are the questions I should be asking? I plan to travel down there next weekend (about 3.5 hours away), so I am gathering all the necessary info.

If I did cashout refi on my current property, i can pull out $155k towards this but will be left with an additional 45k or so if doing 80 LTV, which is why I am leaning toward seller carry a second mortgage.

Lenders out there, now you have my deal, can you do it? Let's talk.