Help this newbie investor to decide if this is a good first property

[Bethany Merlucci]

Hi! I am looking for some help and advice on whether or not this property seems like a smart first investment.  I am not very concerned with cash flow and am looking more towards appreciation and equity.  This property is in the next state over from me (only about 90 min away) and is a 5 unit, therefore I'm looking at a commercial loan.  The asking price is 479k, with taxes at $2200 per year and insurance at $3000 per year.  The current owner listed last years income as $51,000, but currently has rents at (for the five separate units): $650, $750, $800, $825, $1125 (the math doesn't totally add up so maybe he changed a rent payment at some point).  The tenants pay all utilities including sewer and garbage.  The preapproval that I got for the commercial loan is a 20 year loan at 7.75% with 20% down and $20,000 in closing costs.  Without accounting for management fees (I have not yet decided if I will try to self manage), and with planning to raise rents to typical market of $825 for each of the smaller units, and $1200 for the larger unit, does this seem like a worthy first investment?  Thank you for any thoughts or input!