Pulling Comparables on Multi-Units

[Frantzces Lys]

Hi Everyone,

I've been doing a bit of a research but I thought I would pose the question out to the BP community :).

I am meeting with a Seller this weekend that has a multi-unit property that he is wanting to sell. I have never dealt with a multi-unit property. It's five 1 bedroom units, one car garage on 11,505 sq. ft. lot. He owns it free and clear.

The tax assessment states that it's at $301,300. The property does need some repairs but from what he says it doesn't seem that they would be major repairs. 4 of the units are rented. 

Rents are as followed:

Unit 1 = $750 (utilities included)
Unit 2 = $750 (utilities included)
Unit 3 = $750 (utilities included)
Unit 4 = $750 (utilities included)
Unit 5 = $800 (separate meters)

Taxes for the year are at $3754

What's the best way to gauge the value of this building? It's the only multi-unit in that particular neighborhood. He wants $200k (ideal) but I'm sure we can negotiate a little lower based on the repairs. 

I guess my bigger question is how do you evaluate a wholesale deal on a multi-unit with little to no comparables? I know with multi-units you're really looking at the income production of the property. What are key things to keep in mind?

Thank you in advance!