Multi-family always over priced?

[Bryan H.]

So as I evaluate multi-family properties in areas that I would like to purchase, it always seems like they are WAY overpriced. Maybe I am doing something wrong, so I am looking for help.

Here is an example property

Based on my calculations

8 units x $580/mo x 40% (water/gas LL paid) x 12 months x 10 CAP = $222,720 purchase price

Using that formula, my purchase price is never close to the asking price. So, am I doing this right? Are the sellers looking for a sucker?