Help analyzing a 22-unit deal, (my 1st commercial multifamily)

[Vince Gethings]

Good Evening BP!

I have a property I have been looking at and I would like to see what the community thinks. The property is a C+ class in a great city with good schools, and stable job market. Rents are below market (9% on the 2beds, 18% on the 1beds), I think its due to passive management. 

22 units (2 buildings, brick low-rise)

Asking Price: 1.2M

7 Cap Rate

NOI: 89,191

2016 financials:

Income: 151,083

Accounting fees: 2,492 

Legal fees: 347

Insurance: 3,100

Repairs: 22,511

Utilities: 7,665 (landlord pays trash and Water

Contracts: 2,840

Taxes: 26,402

My underwriting of this deal, says the purchase price should between a 7.5-8 Cap. What do you think?

About me: I have 13 units in this market, however, they are all duplexes and fourplexes. I want to break into commercial in 2018. 

Thanks in advance!

Vince G