8 Unit complex - analysis / offer help

[Craig Montesano]

Hi BiggerPockets

This property is currently off the market. Seller is supposed to be working a number up for me....

Here is the info:

2 brick buildings each with 4 units. Kitchen, living room, bathroom downstairs with one bedroom upstairs.

Currently there are 0 vacancies.

Rents - $530 x 8 = $4,240 / month

Monthly Expenses
mgmt fee - $275
Common Electric - $20
RE taxes - $500
Dumpster - $103
Sewer - $336
Insurance - $160

Still not sure what I am going to do for financing. Might throw seller financing out there and see what happens. The downpayment will be rally tough to come up with. I could use our heloc on our primary residence but Im not sure if I want to put our home at risk???

Have talked to the local banks about commercial loans and to be honest they kind of confuse me. I have only dealt with single family homes so I currently have fixed mortgages.

I desire a CAP rate of 10%
That beign said NOI / desired cap rate = selling cost. Is this correct?

NOI=$34,152
$34,152/10% = $341,520

From the local market values I am thinking a good price would be in the $320s.

Am I doing any of this right or am I all wet?? LOL

Any help and input is GREATLY appreciated.

Craig