Analyzing an 8-plex; is their price too high?

[Samuel Bavido]

The good: This property is owned by an elderly woman who is in the hospital; her two daughters manage it, but they live out of town. They don't seem to know a lot about marketing their property; it is not listed for sale online, and they are not working with a realtor; it's just a cardboard sign in front of the property. It is located directly next door to a major hospital, so there is stability in the neighborhood. 

The bad: I have very little cash on hand. I'm wanting to run the numbers on this deal to see if it is an incredible deal. If it is indeed incredible, I will explore options for creative financing, but I'm not interested in highly leveraging myself for a ho-hum deal. 

The numbers (as provided by the daughter; I have not independently verified anything.)

8 apartments, 6 upper and 2 lower

Building age 47 years.

Building Area SF 8,448.

Site .881 acres

Property Taxes $8,442

Sewer/water and electric $3,420

Gas $3,072

Apartment

A $700.00

B $635.00

C $700.00

D Available asking $700

E $595.00
F $620.00

G $540.00

H $575.00

There is a $25 discount if rent is paid by the 1st.

Asking price $375,000

+++++++++++++++++++++++++++++++++++++++++++++

So, assuming everyone pays on time, that brings the net monthly income to $4,865. I asked her to provide me with more details so I could figure out the NOI, and she sent me tax returns for 2014 and 2015 (why is 2016 not included? Not sure...something to check on if I decide to pursue this deal further.)

So, the NOI for those two years averages out to $22,000 a year. (at least, that's what they've claimed on their taxes) Now, if I understand the math correctly, I need to divide that number by the cap rate to get the property value. However, I am not sure of the cap rate in the area (we're new to the area...and I'm new to multi-family!) Digging online seems to indicate the cap should be about 9% (which sounds reasonable), but I don't know if those numbers are at all reliable. At 9% cap rate, the property should be worth $244,000, which is a pretty major price difference from $375,000. Have I done the math correctly? What information am I missing, and how should I go about getting that information? I don't want to go to the owners and tell them they are over-valueing their property unless I am 100% that I am correct.

Finally, what advice might people have about maintenance and CapEx estimates? It's a single building built in 1970; two stories with a basement. There is a detached garage building with 8 garages. What percentage would you figure on this?