Acceptable COC ROI for an investment package

[Michael Correa]

Would appreciate any guidance from folks who do multi-unit deals. I have an opportunity on a 12 condo package. If I go forward, this will be a commercial loan package and I have a good local lender willing to work with me.

• Sale Price :675K (ask is 700K)
• Down payment: 20%
• Amortization: 20 yrs
• Interest Rate: 5.5% 

• Rental Income: $7800/month (ave. of 650 per unit)
• Expenses : $7247.39
  • P&I (based on above): $3714.59
  • Taxes: $664.80
  • Insurance: $660
  • HOA: $960
  • Prop Mgmt: $468
  • Vacancy reserve: $390
  • Cap expense reserve: $390

This gives me a cash flow of $552 a month. On an investment of 141K (down payment and closing), COC ROI seems to be a poor 4.7%.

Would any of you go for this deal?