Duplex Analysis - What's wrong here?

[Spenser Harding]

Hey BP, came accross a duplex and I feel the numbers are out of whack some where so I need some help as I don't want to over pay.

-2 studio units @ $500/month, rentometer/market has average rent around $575.
-Listed for $99900
-Total Monthly Expenses $280 (water/sewer/garbage + monthly insurance and tax, $3360 annually)
-NOI of $720 monthly ($8640 annually)
-Cap rate 9.70
-GRM of 30

I don't get how they got 30 for GRM and when I calculate cap rate, 8640/99900 = 8.64, not 9.70. Max purchase price I calculate using the stated rate is 9.7*8640 = $83808. The listed numbers don't add up so I need some other oppinions!

[Lane Kawaoka]

Agree with those above. 

1) People like to paint a doom and gloom because they are scared of newbies driving prices up.

2) Take everything at face value, 2%-3% rule does not really exist in Washington as it does in other "fly over parts of the country".  Do you own chugging of the numbers to see if they work.  The deals will get better as you gain experience.