Negotiations on a 10 Unit Property in Norwood Cincinnati area

[Theo Hicks]

I am in negotiations with the seller, and he keeps bring up the fact that they want to be paid for labor and management they put into the property at a $30 per hour rate, so they are adding an additional $75-$100,000 to the list price. However, they keep telling me that the management portion of expenses is $0.

Any advice on this? Has anyone else experienced a seller using this as a negotiation tactic?

Do I add this expense to "management"? Or do I just tell him that I am an investor, not in the business of paying someone for labor costs? 

I have a phone conference with the sellers this afternoon so I need to figure out how to approach this so any input would be appreciated!