New-B, looking to scale

[Joshua Williams]

1st Post (a bit of an introvert on all things Social media) - bare with me. Thanks to BP for all their work, resources and continued encouragement. I have never been more motivated to become financially independent through RE thanks to BP!

Recently purchased my first 5 unit complex - 1st month (water line burst = most cash flow gone). Found another 4-plex with good/great numbers (>$200/unit CF) which I am now under contract and moving fwd with inspections and a lengthy close secondary to seller (as you read further, should I consider getting out of this contract - only $500 in earnest).

Have always dreamed of owning the apt complex my single mom and I spent a few years in growing up (yes, there's an emotional element here). Looked up the owner (took some digging), but was able to have a conversation with him yesterday. Fairly optimistic he is willing to work with me. I am having some troubles running the numbers - I don't have all the details, which I know is part of the problem (no NOI, rent rolls, expenses). Additionally, I am struggling to rationalize the $3 million asking price. While I know this is not a large number to some/most here, it is definitely a different tax bracket than what I've dealt with. No, I do not have the even close to 10% of a down payment and I would likely need to get creative in financing the deal. Nor do I believe this is a crazy number/asking price for the area. Additionally, I believe there is some significant room for 'value-add' on the property (would also take more capital/creative financing). I know this is possible and can be done, I am asking for guidance on a more thorough valuation (NOT A MENTOR).

I have read, listened and done a bunch of digging through the forums trying to get a solid starting point. I have called the county assessor and determined last year's tax numbers. The seller is hoping to have another conversation next week - I'm hoping to have a better handle on the next step/consideration, knowing I will need to try and get more info from him (NOI and expenses). He is wanting to 1031 exchange into another property closer to his residence and doesn't sound as if he's willing to move fwd until he has identified another property (I think I have some time, but also want to be prepared). Thanks in advance for reading this and any info/advice.