Need help evaluating the numbers on a 12 unit apartment building

[Roschelle McCoy]

I'm looking at a 12 unit apartment complex in Central Illinois that is for sale. It's a nice place that has been well maintained, owned and managed by a husband/wife for over 20 years. Units are in good condition, but could use some updating which could in turn command higher rent rates. I believe the seller is asking a bit much for the property and at this point is not highly motivated, but is willing to negotiate. Where I'm really struggling is trying to determine the value of this property to know what is a fair price (I know every deal is a good deal at the right price :). I've divided NOI/Cap Rate but the numbers aren't looking right. I'm wondering if someone could take a few minutes to look over my numbers and see where I may be off a bit. Any takers?

[George Skidis]

Old school on the fly method. 5 times rent is the maximum you could pay. Current Rent x Number of units x 12 months times 5 years = Maximum purchase price. Of course you want to get it for less than that.