WA Multi-Family - First Property Help

[Johannes Ariens]

Hey everybody,

I have a place under contract and just received the financials.  Here are the details of my first offer and what is was based on:

5 Units (all rented) = 1,995

1 House 2/1 (rented) = 650 

7 RV Hookups @ 350 (3 rented) = 1400

Expenses = 14,400 

Asking: 249,000

Declared Gross Income: 55,200

OFFER 1 (Based on above)-

Owner Financed

Price: 240,000

Down: 20%(48,000)

Interest: 8%

Terms: 10 year balloon on 30 amortization

Returns: Cash on Cash= 28% Cash Flow= 1153

Reality

5 Units (all rented) = 1,995

1 House 2/1 (rented) = 650

7 RV Hookups @ 230 (3 rented) = 690

Expenses = 14,400

Asking: 249,000

Actual Declared 2014 Gross Income: 37,364

Actual Declared 204 Expenses: 34,367

Given this information the expenses are obviously bloated, the utilizes are not meter separated (where 50% of the expenses come from) and the rents are below market so my question is what should my next offer look like?

Thanks a ton for helping out a newbie BP!

Johannes