Paying above appraised value for SMF??

[Kera Covani]

Is it ok to pay above appraised value? I have offered on a 4 pleX - all 3/2’s. Good area and school district. Was under contract but buyer couldn’t come up with extra down payment. An appraisal was done at 390k - owner wants at least 425k and will not reduce to appraised amount. Appraiser couldn’t fine enough comps because the others that have sold in the complex in the last year have been 2/2 and not 3/2. Comments, thoughts, suggestions.

[Steve Vaughan]

Here even with low insurance premiums and low property taxes, I need my multis at 1% to pencil. At $105k per unit, they'd have to rent for $1050 per month each. 

What are the rents? What utilities do you pay for?  What do insurance and taxes look like in your area?