Five percent of my gross rents are enough to pay my own employee that I train to manage all my apartments.

"Five Times Rents" lets you know the top dollar value of a "RENTAL" property at this time.If gross rents are $2,000.00 a month then annual rent is $24,000 a year. 5 x 24,000 = $120,000 as the top value anyone should pay.

We didn't want to get bad reviews from people thinking the house is gross or too outdated etc.

Assuming the monthly gross rental income is 80,000, What should I consider evaluating this deal?

In short, focus on increases in income/value relative to costs, not just gross value added. 

This has nothing to do with the seller......other than having a week listing agent who knows many agents won’t work at this level at 3%.This is the Buyer agent simply saying.....it’s not worth my time to do a deal for less than a $1500 gross commission....so if you want ME to represent you, then you have to make up the difference.

It's as Sean wrote: "You just have to list out the income vs expenses".I'm glad you got the message about property managing not being "passive income", so should be included as one of your expenses, whether it's managed by you, or someone else.As a general "rule of thumb", if your $200k primary will only gross $1,400/m (ie. a lot less than 1%/m), it won't be a good candidate to allow you maximum levage and positive cash flow!

It's fully occupied four-unit that rents for $3,675, so even at $270,000, it still satisfies a 1.4% gross yield. 

So, the property would gross $4150 or $4500. 

With that said at that price of 550k I would negatively cash flow annually $-10,670 ($47,520 gross rent - $24,000 expenses - $34,190 mortgage).