Well I'd need to be familiar with the neighborhood, which I'm not, but one thing that jumps out is on LoopNet's Stats and Trends: This Property Asking Price $/Unit $49,583.33. Nearby Properties $40,000
Why is this one worth 25% more than nearby ones? (It may be, due to the renovations, particular neighborhood, etc., but it's worth digging into.)
Also LoopNet cap rates are almost ALWAYS exaggerated (anyone's cap rates, really). And I'd think 8% is about what it should be, so if it is exaggerated your return won't be stellar. Ask to see the owners tax returns and find out actual expenses they've claimed for the last few years. Ask to see rent rolls and leases. Something like this requires a decent amount of due diligence.