Opinions on an investment property portfolio's P&L

[Jeff Lever]

Hey Folks,

We presently have 1 rental property and are considering expanding our portfolio since our first rental property has been pretty good to us for the last 5 years. Wanted to get some opinions on the P&L for the last year for a MF property we are considering:

Purchase price is $440k - so i think that puts the cap rate at about 7.2% - which seems a bit low to me...but that does include full property mgmt as well. Without the property mgmt, you'd be looking at income of about $37.4k which would put the cap rate at 8.5%. What would you guys say is a fair price to pay for this property?