Need help evaluating slightly odd 14 (15?) unit deal

[Jeremiah H.]

I continuously see For Rent signs in front of some townhouses in my area and it led me to research the property in hopes of finding a potential seller. The owner lives approximately 6 hours away and is definitely an absentee owner. After speaking with him I've gained that he is well off and this property isn't his priority. I was able to schedule a meeting with him upon his next visit to the property, which was today. I'm not sure it effects this deal, but an interesting note is he flies his own plane to visit the property when he comes. 

The 5 properties are all located within a few blocks of each other with different sets of duplexes, triplexes, and one SFH that he currently uses as a place to stay when he comes to visit the property. Currently 2 units are vacant (3 counting the SFH), all units are under priced by $25-$75/month, and the SFH needs minimal repairs to be rented as a 1/1 with a second bedroom available through the first bedroom. I'd consider the properties class B in terms of multifamily in my area.

After we chatted for a bit I wanted to have a serious conversation before leaving due to this being a rare face to face visit with the property owner. So I asked if he considered a price yet and he hadn't landed on a number. He's willing to provide balance sheets, income statements, etc. but he readily admits to the property being underused and he isn't willing to sell at market price based off current numbers. The properties are all in good shape with no immediate major repairs needed and I'd have all apartment units full within a week so it doesn't concern me that the property has been under performing. The properties are all mid to late 1980s and block structure. Some roofs are 2-3 years away from being replaced.

One big benefit I believe this deal has is having the properties on 5 separate parcels. I believe in the future this will allow me tons of flexibility. I will have the options to sell off a single duplex which opens me up to a whole different market of buyer. We have so few multi units on the market in my area that they are selling at a premium. 

Here are the numbers I've come up with based off his current rents, my knowledge of the local market, local mortgage banker's advice, and a few other factors. 

Yearly Rent $133,200

Local bank willing to conservatively run numbers at 90% occupancy based off my current properties being over 100% (yes, we are over 100% occupancy) the last 2 years, lend at 5.5%APR, and loan 75% of the loan amount

2015 Taxes $15,647

2015 Insurance $13,000

Most of my current properties are class A, SFHs, that were all built in the last 15 years. I'm currently experiencing very little maintenance cost and want to make sure I accurately calculate this expense. Any advice is greatly appreciated. A local investor with similar properties tossed out $1,000 per unit, per year. 

Based off this limited info, how would you value this property? I'm willing to pay based off better numbers than he's been putting up because I think it can be turned into my type of property overnight. It's 5 minutes from my house and my business. We manage our own properties and are very on top of keeping our properties rented and well kept. 

Any advice or thoughts are greatly appreciated.