9 unit: 2 triplex, 1 duplex, 1 single unit analysis

[Shawn H.]

There is a local 9 unit property available, I would like some input on maximum purchase price.

9 units: 2 triplex, 1 duplex, 1 single unit. 7- 2bd, 1 ba, 2 -1 bd, 1 ba, all in one location

From the owner:

He says bank loans 7x rent in this market, that's the price range. So 7x36,300= $254,100 asking

Gross income: $36,300

Property Tax: $2455

My estimate on insurance: $2400-3000/yr

Utilities paid by tenant.

No property managers in this area.

The maximum purchase price I came up with is $163,000, before repairs. I've been in a couple units before. I know the flooring, appliances, waterheaters will need updated soon. The outside looks to be in good condition. I used 45% for expenses, cap ex etc. The owner has owned these for a long time. How do you come to an agreement when so far apart on prices? Let me know your thoughts, thanks.