Tampa Multifamily Offer Price Question

[Seetha G]

Hello All

I am analyzing a 6plex property in Tampa, Florida.

Asking price is 700K. Current rents are 4800 and there is a potential to increase the rents up to 5400 monthly.

Sellers 2015, 2016 expenses were too high based on the schedule E as there was lot of repair work done.

If I have to calculate price at least for 6 Cap based on 2016 expenses, price is coming to 350K. Can you please suggest what should be done here?

Should I place offer at 350K based on previous years NOI or since there will not be so much maintenance work needed and potential to increase the rents, should I place an offer on pro forma which comes to around 450K?

Thanks!

Seetha.