First potential Multi-family deal! 11 townhouse units

[Tom Shepard]

Looking for advice on offer/max price.

Also looking for what I missed in calculations.

First the hard part:

This property is in rural TN in a town of about 20k population.

Current owner has been renting to local college for basketball players/coaches (both boys and girls teams have used it).  Has been giving below market rent due to this fact ($500/mo), market is easily $600.  HOWEVER, the basketball team is/has moved out and that will leave 8 of 11 units vacant at end of June. With 2 of them stated as "rent ready"  Owner has been self-managing due to ease with rent payments being automatic.

Here are the numbers once stabilized:

Asking Price: $529000 (Last sold May 2006 for $510,000)

Offer price? (Thinking $425,000 perhaps go up to $450?)

Units: 11 connected townhomes (one building, one roof)
(All 1280 SF 3 bed / 2 Bath units -- 2/1 upstairs 1/1 downstairs) on 0.46 acre

Built in 2000, metal roof, brick and vinyl exterior.  Separate meters for water and electric.

Monthly Rent: $600/mo (estimated based on market)

Annual Rent: $ 79200

Vacancy: 10%

Effective Gross Income: $71280

Taxes: $11,126 (actual 2014)

Insurance: $4800 (Slightly more than current owner is paying)

Management: 9% ($7128)

Repairs/Maint/cap ex 15%.: $11880

Marketing/Promotion: $1000

Total Expenses: $35934

NOI: $35346

Debt Payment (P&I): $2227/mo or $26724 annual
(based on $450k purchase 25% down and 20 year am at 5%)

Cap Rate: ~7.9%

Cash on Cash: ~29% (based on 25% down and 20 year at 5% and $7k closing costs)

DSCR: 1.32x

1% Rule: 1.76%

GRM: 6.31 (using AFTER vacancy Gross Rent)

Debt Yield: 10.47% (based on 25% down $450k purchase price)

Wondered what other items I should be asking the seller for in order to evaluate properly?

Also wondering if any bank in their right mind will loan on this property with 8 of 11 units empty?  I may also ask for seller financing, especially since it seems in discussions with his agent that he is more worried about the hassle factor than needing the money.

Appreciate any and all comments and critiques of my numbers!