23 unit multifamily deal

[Warren Straley]

Was hoping to get a little advice on this potential deal. 23 unit single building three stories with rear parking, and a small two car detached garage the is rented to two of the tenants.

12 one bedroom ($325.00) and 11 two bedroom apartments ($360.00) Gross rents of $82,300.00 2016. Expenses for 2016 (according to owners) are as follows:

Ads - $100.00

Travel - $4,018.00

Cleaning - $2,590.00

Insurance - $3,827.00

Legal - $595.00

Repairs - $6,075.00

RE Tax - $10,943.00

Utilities - $11,400.00 (Owner pays water, and electricity for hallways, and gas for hot water heater)

Total  Exp - $39,548.00

Owner is asking $30,000/unit for a total of $690,000.00

What is everyone's thoughts on this? What would be a reasonable sale price? I have already made an offer and have been countered. I would like to have your thoughts first.

I feel rents are low on this building. It is not the cream of the crop, but with a little better management could be nicer. It is known to be a low or lower income building, and owners even said "We aren't out to get everyone and like to help people so we keep the rents low". That's nice of them, but you can still help people, and have good business sense at the same time.

Thanks!