12-Unit Rental Property Analysis Help

[Scott Johnson]

Hey, everyone!

I'd appreciate a second set of eyes on my analysis:

https://cdn.carrot.com/uploads...

The seller is asking $1,175,000 for this 12-unit apartment building. Their actuals (see 'Prior Year Financials') are showing an NOI of $36,310.40 which puts it at a 3% cap.

The terms I'm working with are 7.5% Interest, 80% LTV, 20 years and a 5 year balloon. I then subtract my cash flow from my NOI and use that as my mortgage payment, use that to calculate the loan balance & purchase price. This tells me that the only way I could purchase this property is if it was $431,614 which is $10/unit cash flow per month 🤣

Am I going about this analysis correctly? I'm pretty sure I am, but I may need to be put in my place, so feel free to be brutally honest. If you have any additional resources where I can learn how to analyze multifamily properties, it would be greatly appreciated. I'm using what I learned from The Advanced Guide To Real Estate Investing by Ken McElroy and what I learned from my Single Family mentor. 

Thanks in advance!