Deal Analysis HELP- Diamond or Dud

[Canesha Edwards]

Good morning all, 

I apologize for the long post. However, I am analyzing a small apartment complex and the numbers seem to workout but I feel like I am missing something. 

Property background: 

The property is located in a great location but not so great neighborhood. Less than 5 miles from downtown Atlanta, Mercedes-Benz Stadium, and multiple colleges. There more vacant properties in the area.   This specific property is listed through a broker and has been on the market roughly nine months.  The property is vacant and would need a full rehab inside and out.  The broker has the property listed for $349,900.  According to the broker, there are 12 units but the property records show it's only a 9 unit. After doing some research and calling around to other apartments in the area rent estimates are around $569 for a 1/1. This seems very low to me given the other apartments in the area are older and haven't been renovated. 

The asking price is $349,900

I've estimated $150,000 for rehab cost. ( $100K interior and $50k on exterior landscaping)  Cost could be a little higher given the issue that there is currently no onsite parking. 

So, running my analysis using only 9 units here are the numbers. 

Purchase Price of $350,000

9 units renting @ $569.00

Annual rent= $61,452.00

Operating Expenses= $ 23,565,60 ( Includes: Vacancy, taxes, Insurance mgmt, maintenance, Reserves) 

** I plan to self manage the property and perform majority of the maintenance work that's within my scope of abilities** 

NOI= $37,889.40 ( annual)

Also, I did the calculations as a cash purchase. Disclaimer, I do not have the cash to purchase the property so, I would more than likely be looking for equity partners. Any advice is greatly appreciated. I am hoping to buy a property in the new year. 

I feel the property is extremely overpriced for the condition it's in. Does anyone have a easy way to determine Max Offer Price?