Bank financing proposal - your opinion

[Chad Linn]

Hi all.  First time MF investor.  18 units, (6 duplex 2 tri), $810k purchase price, $120k cash down payment, cashflow after all expense and reserve and project note payment is $1600 per month.

Bank to finance $690k.  Offering 5 year fixed at 5.25%, years 6 through 10 float at WSJ prime plus 1.5%, Balloon end of year 10.  Recourse loan with personal guarantee.

Positive - they are letting me in at 15%, no prepayment penalty, i am a first timer with no self-history although have managed for others, i think i could sell it for 950k or so as is and get cashflow to 2500 per month in a year.  

Negative - prime plus 1.5% is much higher than what I am used to getting for clients.

Prime plus 1.5% might be a deal breaker in my mind.  Am I being unreasonable?