Looking at a Multi-Family property - does this make sense?

[Brian C.]

I'm hoping someone can confirm my thought process, as I'm new to MF investing: At this point, I've reviewed the owners financial statements and I'm comfortable with the amounts. The 2015 financial statements show a NOI of $66k and the average CAP rate in the area, based on recent sales, is 6.5%. Is it reasonable to make a $1M offer ($66k / 6.5%)? To me this seems like an offer at market and should be fair. Anything higher must be supported by something unique to the property, which I haven't found during my due diligence. Also, based on my own analysis there appears to be an opportunity to add value by rehabbing units, raising rents and running a more efficient operation allowing for a $10k increase to the NOI over a year period. Assuming an all cash offer (to keep things simple) and based on my ProForma $76k NOI, does it make sense that this property would yield a 7.6% return? I appreciate the help!