First Commercial Property - Thoughts Appreciated

[Nitya Gospel Jetson]

Looking at a co-invest opportunity with a friend on a University Student rental property. Its priced at $480k, the portfolio lender has offered a 5% rate for a 20-year loan with the rate being revised every 5 years (need to confirm cap). The property is a 7 unit space - currently rented for $5710 a month. 

Assume we do 25% down, below are the numbers. Is this too low of a cash flow to be making this effort for? Any guidance appreciated

	Monthly
Income:	$5,710.00
Mortgage Pay:	$2,375.84
Vacancy (8%):	$456.80
Management Fee (10%):	$525.32
Property Tax:	$1,333.33
Total Insurance:	$250.00
Maintenance Cost:	$166.67
Other Cost:	$16.67
Cash Flow:	$585.37
Net Operating Income (NOI):	$2,961.21

Downpayment - 25% ($135,000) roughly will all cost, Mortgage the rest.

For the 20 years invested

     

Return (IRR):	15.76% per year
Total Profit when Sold:	$1,059,203.90
Cash on Cash Return:	861.14%
Capitalization Rate:	7.40%
Total Rental Income:	$1,524,478.87
Total Mortgage Payments:	$570,201.76
Total Expenses:	$569,651.94
Total Net Operating Income:	$954,826.93