Deal analysis, what should i offer for this property?

[Will G.]

Hi all, i would like some help on what to offer on a 32 unit complex (my first).

The property is located in a very good area with much sought after school district, built in 1965, 12 two bed 1 bath, 20 two bed 1.5 bath, but current owner did many improvements including, windows and doors, metal roof, plumbing upgrades, repaving, pool reconditioned,flooring, cabinets etc. the only capex i could spot on walkthroughs was the 20 ac units not replaced(recently). There have been only 3 turnovers in the last year, and 9 of the current tenants are section 8. Rents appear to be among the lowest in the vicinity and might be slightly adjustable upward.

256k gross rents

4% claimed vacancy rate=

245,500k gross

Expenses=

$7031 insurance

$27178 re taxes

$21018 repairs and maintenance

$25417 utilities (water incl in rent)

Currently being managed by owner but got quote at 10% of rents and 50% of first month to place tenant

$24500 management

$105144 total expenses

$140356 net

If, big if claimed expenses are correct what should i offer on this property? 

I do plan on 25% down financing, 4.6 percent 10 year note w/30 yr amortization

Thank you for the input