Considering first multi-family - need advice

[Michael G.]

I've been lurking on BiggerPockets for some time, but this is my first post. I have some real estate investment experience (two residential rental condos and one short term vacation rental) and am considering making the leap to multi-family. I have my eyes on a 12-unit townhome complex - all units currently under lease with gross rental income of about $36k/month. The building is relatively new, so I don't expect any significant maintenance expenses during the initial years. The thing I'm struggling with is the cash flow. If I'm able to line up interest-only financing, I think I'll see some modest cashflow (assuming I put 20% down) to the tune of $5k/month. But I can't figure out if that's good, bad, or somewhere in-between. The year 1 cash-on-cash ROI is 4.36% - is that the primary metric I should be looking at to measure the value of this investment? Are there other metrics I should be calculating as well? Thank you in advance - all advice is greatly appreciated.