Offer price vs asking price

[Jeremy K.]

Since I am about to make an offer on my first property, I was wanting to know if it seems way out of line.

The lisitng agent stated that the property had a NOI of $19,500 with a asking price of $249,000 for a CAP rate of 7.8%. If I paid the full amount, my Cash on Cash return would be 9.26% and a cash flow of $82 a month per door.

My figures show a NOI of $15,582 so I was going to offer them $146,182 for a CAP rate of 10.66%. My Cash on Cash return would be 15.78% and a cash flow of $99 per door.

I am basically offering him 58.5% of the asking price. I know the numbers are the numbers but S---, that seems low. All opinions are welcome!

Thanks!