Hi, I'm in the middle of negotiations on a multifamily property and from the APOD and a cap of 10, my offer is very low but I went with it anyway. The counter offer was more than double my offer. Since I'm new to multifamily properties, I'm wondering if I'm not considering all the criteria I should. For some info on what I'm looking at, it is a 4 plex with the rents lowered to $690 monthly. Currently 1 unit is empty. The gross income from 2009 on the APOD is $27k with the total expenses of $17.5k. With a cap of 10, my offer was $110k. They also showed this year through July as having an income of $15.5k with expenses of $10.5k, which when figured out was less then 2009. I've also read where your monthly income should be 1% of you max offer. The 4 plex asking price is $280k, their counter offer was $250k. The monthly rent comparables for the 2bdrm 1.5bth units are from $750 to $850. As you can see the rent at $690 is very low. Is there something I'm missing or have they managed this property into the ground and want all they can get from it? This is also a short sale.