24 unit apt complex Class C

[Bab Adetiba]

16 (2/2) and 8 (1/1) units. I'm very familiar with the area

From P and L

Gross income: $145,000

Gross expense: $53,000

NOI: $92,000

Asking $1,000,000

Weird expenses are $0 for landscaping and $90 monthly for electric. That doesn't make much sense.  When I underwrite it, cap is 9.2%. The average cap in the area is 6-8%.

How do you account for cap ex? By having a separate cash cap ex reserve or accounting for 10% from your gross income?

I want to offer $850,000, 10% down and 7% interest seller financing. Is this standard rate? Also the Owner is out of state, and shoddy paperwork suggests poor management. Some value add opportunity on the place. I have a few single families but this is my first apartment deal. I will be sending over the LOI soon.