Financing an 8 Unit Apartment Building

[Chad Day]

An 8 unit apartment building recently came on the market in my town for 250k.  The monthly rent totals $3600.  I figure it would cashflow about $1500 a month.  I ran it through the buy and hold calculator and the numbers are great, but I don't know if a few of my assumptions are off.

This would be a commercial loan. What kind of APR's should I expect? I used 20 years @ 5% with 25% down. Is that about right? This would leave me without much cash in reserves. Does a commercial loan require you to have a years worth of operating expenses in reserve? Do they count future rental income in that number?

I also assumed $300 a month for insurance.  Does that sound right for an 8 unit apartment building?  It is small, all units are 1 bed 1 bath.

Thank you!