The rents are between $1000 and $1500 low per month. This means it will not cash flow well now. The property actual will lose about $60 per month in it's current configuration.
With some slight changes, the property can be brought to cash flow positive immediately. There are two additional income sources a savy owner can take advantage of: 2 parking spaces, which should rent for $100 per month and coin laundry, which on 6 bedrooms should generate $50 to $75 per month.
This leads to another $250 monthly, or $3000 annually. Wiping out the $60 a month loss and creating a small $200 per month of cash flow.
The big secret to changing this building is to turn over the suites. Increasing your monthly rental income has a drastic effect on the value of the property.
By increasing your monthly rent, assuming an increase of $1250 per month ($312.50 per suite per month), this means the net income goes from $34,482 to $49,482 which supports a value of $899,000 ($49,482 divided by 5.5%).
There is also a potential to put another suite in the basement, likely a one bedroom. If the basement one bedroom can rent for $900 a month, that means an additional income of $10,800 increases the value of the building by $196,000 ($10,800 divided by 5.5%)
The total income would then be $60,282 with a 5.5% cap is a value of $1,096,000
Let's assume you can buy for $775,000 plus $50,000 (estimate for a one bedroom suite construction) is $825,000 - meaning and equity bump of $271,000. The other interesting development is that this property will now cash flow over $1000 per month.
*** This is predicated on increasing rents and using the cap rates to validate the appraised values.