Apartment Package in Ohio

[Andy M]

So a seller just offered to sell me his group of 5 apartment buildings in Cincinnati for 2.1m, holding no note. I'm looking forward to hearing what you guys think of the deal.

Here's the scoop:
Property generally in good shape, some newer updates, no major repairs needed. (Now naturally I'd do my due diligence and make sure the seller is speaking the truth here, but for this phase let's pretend everything they said is truthful).

current gross income: 468k.
current expenses:309k
current NOI:159k
current cap: 7.7%
current occupancy: 68%

seller supplied rental comps to justify (seemingly correctly) the following proforma:
proforma gross income:732k
proforma expenses:340k
proforma NOI:392k
proforma cap: 18.7%

$ PSF: 20.50
$/unit: 20,200
average monthly rent: $550

comp cap rates are in the 9% range, with /unit costs between 25 and 35k, PSF averaging 35-45.

So obviously the deal isn't that hot with the current rental situation, but the comps seem to support the existence of a strong upside. Let me know what you think, and if you'd be interested in either doing a JV or straight purchasing it from me.