9 Unit Apartment Building... Is it worth it?

[Brittnie Stewart]

I really need some help with figuring out if the numbers work for this deal I am trying to do.

It's a 9-unit apartment building that has been vacant for quite some time. The current owner doesn't even know when the last time its been occupied. I've seen the building personally for the last (at least) 7 years in the same condition. So, I know it will need a lot of work. Everything is going to need to be redone (plumbing, electric, heat, floors) I haven't been inside yet to see what other types of things it needs.

It's in an up and coming neighborhood in Baltimore City. Rent will range between $900 - $1050 for each unit. The owner is pretty firm that he wants $200,000 for it. There are no other buildings in the area to really use for a comp. And I'm not completely understanding how to use NOI and Cap Rate to figure it all out. Can anyone help in any way?