Determining offer price on 4 family

There is a 4 family which I would like to buy. I’m trying to determine the maximum price I should offer. I want to buy and hold for at least 10 years. Financing is all set. Interest rate is 6.5% for 30 years.

There are 4 units: Unit 1 rents for $490; U2 = $525; U3 = $750; U4 = $550. Total rents = $2,315. The rents are low, however. Total rents to be in line with the market should be $2,500. Utilities are paid by the tenants. The house is in fantastic shape, and no repairs are needed now, nor are there any obvious ones coming up.

Taxes = $3,600. Insurance is a killer = $3,300.

The seller is asking $280k. I can’t justify it. I have not yet reviewed the schedule E’s. If I use the formula 75% of rents covering PITI, I come up with something like $208k. I am pretty sure they won’t go for it.

Is there another way I should be looking at this?

Bad deal, tell the seller good luck. This asking price is way out of whack. It definitely needs to be sub 200K to even consider