Newbie needs help on valuation

[Adam Stroik]

Hey all, super pumped for finding BP. I've been a landlord of a SFH for four years now and am about buy my third single family in Southern California. That's all going well but I'm tying to take the next step into multis. I found an 8 plex and have been running the numbers and must be missing something. All numbers are from the listing agents pro forma. Rents are 113,460/yr with a 90% occupancy rate (ave 102,114). Op expenses are $33,789. Puts NOI at $68325. Cap rate (advertised by sellers agent) is 5.26 which puts my valuation at $1,298,954.36. They are asking 1.6 mil. For ease of math, say I offer $1.2, 10% down I'd finance $1,080,000. Even if I'd get financing at 4% my mortgage would be $61,873.08 per year. With operating expenses that's $95,662.08 expenses. That leaves $6451.92 in profit. Not a lot of meat on that bone. Would I use actual potential profit with 100% occupancy? Am I missing something? My offer would Be way below asking, and if I had to use hard money at something like 10% I wouldn't even be close. Thanks for the help all, what a resource this place is!