Apartment complex NOI question

[Billy Guyette]

I'm looking at a 40 unit in my area that is currently for sale and owner operated. I understand that the value of in apartment complex is based on the NOI. The owner of the property self manages and doesn't count his time as an operating expense, thus increasing his NOI. When I value the property and negotiate with the owner, is it fair for me to add what I think management would cost? This would increase operating expenses and give me a different cap rate then what the owner is advertising