Can you tell me why this is or isn't a good deal?

[Tony Frasher]

I have a couple of single family rentals, but eventually I would like to get into commercial properties. This will probably be at least a year or two out, as the numbers scare me for the time being, but I would like to start learning about what to look for now. This is a small apartment complex I came across. If you saw these numbers would the discussion end right there, or would you want some more information. What questions would you ask? Any input is appreciated.

Price: $1,100,000
Price/Unit: $45,833
Price/SF: $66.37

24 units
15 1Br/1Ba 600sq ft $547
9 2Br/1Ba 750sq ft $683

INCOME Current Proforma
Gross Annual Rent: $172,140 $181,800
Other Income:
Miscellaneous: $3,774 $3,774
Gross Scheduled Income: $175,914 $185,574
Vacancy Allowance: (10%) ($17,214) ($18,180)
Effective Gross Income: $158,700 $167,394

ESTIMATED EXPENSES Current Proforma
Insurance: $2,798 $2,921
Property Management: $11,109 $11,718
Property Taxes: $5,703 $5,703
Gas & Electric: $16,804 $16,804
Water & Sewer: $13,381 $13,381
Repairs & Maintenance: $9,600 $9,600
Administrative: $3,600 $3,600
Trash: $1,320 $1,320

Total Expenses: $64,315 $65,047
Expenses Per Unit: $2,680 $2,710
Net Operating Income: $94,385 $102,347

NOI: $94,385 $102,347
CAP Rate: 8.58% 9.30%
Projected Debt Service: $62,575 $62,575
Before Tax Cash Flow: $31,810 $39,773
Cash-on-Cash Return: 11.57% 14.46%
Principle Reduction (yr. 1): $9,221 $9,221
Total Return: 14.9% 17.8%