Need help to analyze 8-plex in Dallas, TX

[Nick B.]

Hello BP!

I came across an 8-plex with the following characteristics:

• Built in 1982, renovated in 2010
• Located close to Dallas Love Fields airport, across the Bachman lake
• 8 units, 1bdr, 640 sfq
• 100% occupied with 6 tenants on month-to-month lease
• $495 monthly rents
• Gross rent: $45240 (2013 actual)
• Actual expenses: $18770
• Property management is done by the owner
• Tenants pay for electricity; owner pays for water/sewer/trash/etc.
• Building is said to be in the good shape
• NOI for 2013: $26470

Current owner is in the process of raising rents to $525/mo.

If I use their 2013 numbers and project them to 2015 with the addition of property management (10% of gross), I arrive to NOI of $22K which is close to 50% rule.

How much should I offer for this property? The asking price is 330K and is based on 8% cap rate. 

Of course all numbers are subject to verification and whatever offer I may make will be contingent upon due diligence.

Thanks
Nick