How to agree on a price on multiple duplexes

[Toben B.]

I need help negotiating a package of 15 duplexes. I already own several duplexes that I bought one at a time.  

The deal is for 30 duplexes with an average rent of $1062.50 a month. 

These appear to be in good shape and are rented at an appropriate price point.  I know the market well and understand duplexes very well, but I have never purchased more than 1 property at a time. 

The seller is asking about $2.2 million. Which is a fair price if we were to break them up and sell them individually. 

If you compare this to the 2% rule - he is asking 1.4% in rent per month.  I would be much happier to get closer to 2%. 1.67% would be my highest offer or about $1.85 million. 

Help me structure a logical argument as to why he should accept $1.85 million or a lower price point instead of $2.2 million. 

I don't have the P&L statement at this point.  96% are currently occupied. 

Thank you,

Toben

How do I determine a fair price on the entire package.