Need help with making an offer on a deal.

[G Ben]

Hello Everyone,

I am looking to make an offer on a 5 unit property, which would be my first potential deal offer. The units are fully rented with property management in place. The owner wants to sell but has some mixed feelings. Based on the conversation I had with him, he couldn't give me an accurate or even rough estimate on expenses. He deferred to his property management company. Also, he doesn't know how much he wants to sell the property for at the moment, but may be open to creative financing.

This what I know so far:

• Owner still owe 204 k
  
• Units are residential properties with one deed
• The NOI is roughly 48k no data on expenses
• Units are fully rented
• Property management in place

I am trying to figure the best way possible to do this, because I don't have enough for the down payment to get a loan from a lender. I calculated the property to be worth about 565k based on a market cap rate of 8.5 %. However, I am not sure if the market cap rate is accurate, or how to figure that out. I would prefer the creative route, but there's still a 200k loan on the property. I would appreciate any thoughts, ideas, or comments.

Thanks