Help with Analysis! Market way over Calculations!

[Scott Rosslow]

I am looking at a C+,B- 4 plex in S Florida. Asking is 500k and the neighboring 16 units sold 2 years ago for $1,040,000. These are 825 sf 2/1 units. The numbers are:

• Asking 500,000
• Current Rents 815, 800, 750, 815
• My Offer 200k cash - refinance after purchase
• Monthly Expenses taxes 433, insurance 500, refi mortgage 860, vacancy 318, water/sewer 125, Lawn 100, Repairs 50, Capx 160, Manage 382, Parking Light 20
• Cash flow is 233 at current rents, property manager thought We could raise rents to at least 900 fairly quickly little management before and below market rents now. Would up cashflow to 660 a month.
• 3k closing and 10k rehab costs

My realtor thinks my offer is too low and provided some multifamily comps showing about 120k per unit. Those units are getting about 1000-1200 per month.

One of the owners passed away recently so they should be motivated. Also this property has been on the market for over a month at this point so its not worth their asking price. 

How would you modify my offer? Also they won't hold paper and they want to close fast.

[Brian Garrett]

The numbers don't look very good to me. Where in West Palm Beach is this deal?