Mid-west 11-Unit Offer Price Suggestion

[Annie Li]

Happy Thanksgiving!

I've had good luck when asking my first question on a deal a week ago, so here I am again...:-)

This is a 11-unit multifamily in a quiet residential area, across the street is a cemetery.  9 are 1 bed 1 bath (8 is currently rented with $550/month), 2 needs to be converted to 1 bed 1 bath (not ready for rent yet).  

Per seller, it's very easy to rent because there is a college 5 mins drive away and some other employers in the neighborhood.  Annual net operating income is around $42,000 (seller is managing the property himself so no PM cost).  Owner is responsible for hot water and water/sewer/garbage, etc., renter is responsible for gas and electric.

My questions are:

1. Based on the numbers, what's the fair market value?  I've heard multi-family's values are based on cash flow not comps, but haven't got a chance to dig into it because this listing is a accidental found.

2. Will the cemetery affect property value or rent in the long run? 

3.  I plan to find a residence manager as PM.  What's the fair pay to him/her managing such a property?  

4. Which PM software do you recommend for smaller properties like this?   

5. Any recommendations on lenders?

I really appreciate your input.  Wish all BP members have an awesome holiday season!