First Multifamily Negotiations, help evaluating a deal

[Kyle Gillespie]

I am in negotiations for my first multifamily deal, it is a 12 unit brick apartment complex built in 1950 in rural Washington state (same town as I have another healthcare business in) current owners have done a good job of keeping the units updated. -Asking price is $1,050,000 -Annual gross is about $110000 -Owner financing available. My offer was $850K with $150K down and the owner finances the remainder at 5% for 30 years. His counter is $975K with $150K down the remainder financed at 6% interest with prepayment penalty of 10% of thr balance for the first 6 years. https://www.zillow.com/homedetails/319-H-St-SE-Quincy-WA-98848/2090626530_zpid/ Looking for any insight on what is a good deal for this buy and hold. Not a lot of Multifamily on the market in the area and it all seems to be selling quick at high prices. I based my offer on the 50% rule and thought my offer is on the high end of what would be a good deal. I’m new to real estate investing, other than the commercial buildings I own to house my other business, and don’t want to make a mistake on my first deal.