Analysis help - Small multifamily

[James Winters]

Hi all! I am new and I am trying to understand how to find a good deal so I am walking throughout an analysis of a small multi-unit from loopnet. It show up as a 12 CAP so I can't understand how it could be a bad deal. Here's a link to details: http://www.loopnet.com/Listing/815-9th-Ave-SE-Rochester-MN/8804533/. It’s 6 units renting at about $500 each per month. Not sure on the rooms per unit, but rentometer says the average around this area is $867 so there is room for value add even if getting it at a 12 cap isn’t good enough.

Can someone take a look and let me know what my next steps should be for analyzing this deal? I know it would be a commercial loan, so I should plan to put down 25%. I reached out to the agent for more pictures and a P&L.  What else do I need to think about, and what would a good “low ball” offer be on this?  Thanks!