Please Provide Deal Analysis on a 12-Unit. Feedback appreciated

[Kevin Hunter]

An off-market deal has been brought to my attention.  The owner is not selling, but is not opposed to selling.  The unit is a 12-unit apartment building in Connecticut.  11 of the 12 units are currently rented.  All units are 1 bedroom, one bathroom, with a bonus room (either guest room or office).  I am not sure why the additional space is guest or office, my guess is no closet or window.  All units rent for $750 a month. There is off street parking for all the apartments, a four bay garage and 8 additional parking spaces.  My analysis is below.  What I request assistance with is help formulating a offer price.  I have an idea of what I think is a reasonable offer price, but I haven't purchased an off market apartment building yet and am a bit unsure where to start the discussion on offer price......

Unit x 12	$750
Total	$9,000
Income	Monthly	Annual
Potential Rent Collected	$9,000	$108,000
Vacancy Loss	$900	$10,800
Gross Rent	$8,100	$97,200
Operating Expenses	Monthly	Annual	(% of Income)
Management Fees	$450	$5,400	6%
Repairs and Maintenance	$900	$10,800	11%
Lawn Care	$0	$0	0%
Gas	$0	$0	0%
Electric	$50	$600	1%
Water	$150	$1,800	2%
Sewer	$66	$792	1%
Snow Removal*	$40	$480	0%
Roof Fund	$0	$0	0%
Taxes	$600	$7,200	7%
Insurance	$666	$7,992	8%
Operating Expenses	$2,922	$35,064	36%
Financing	Monthly	Annual
Principle + Interest	$2,725	$32,705	34%
Performance	Monthly	Annual
Net Operating Income	$5,178	$62,136
- Financing	$2,725	$32,705
- Improvements	$167	$2,000
= Cash Flow	$2,286	$27,431
Custom
PITI	$3,991
Cap Rate	10.4%
GRM	6.2
ROI	22.9%
Ann Inc - 10% / Purch Price	14.6%

I plugged in 600K for an offer price because that warranted a cap rate of 10%+. That is not my answer necessarily, but a good stepping off point, I thought. With the ROI high enough I am open to offering a bit more but obviously want to get in as low as possible. Additionally, I used a commercial loan as the basis for funding with 20% down, but am hoping to work seller financing to entice them to a lower price with opportunity for interest and a monthly income stream. Not the only option, but one I am going to work.

Other notes:

The units are in extremely good shape.  This is essentially a turn key deal, not a value add

The unit rents are undervalued (roughly 10%).  Not a consideration in offer price, but a nice benefit.  They should rent for between $800-$825.

Off street parking is rare in this area.  The fact that they all have a space makes them appetizing which helps keeps the vacancy rates low.  I will still plan for 10% of course, but the parking will help.

Please help me find a good offer price that won't end the conversation with the seller, but is a good enough deal to make it happen.

Thanks all in advance!