How should I think about this RE deal?

[Victor Rosso]

Hi, wife and I are first-time RE investors, based in Chicago. Our offer just got accepted for a new development duplex-down in a high-growth neighborhood of Chicago. Trying to pressure test the deal financials with the group here and see if this is a good idea. We will be living in the unit for a few months and then renting it out starting summer. Thoughts?

Property details:

1. Duplex down - with 2400 sqft
2. 5-7 min to train, bus, groceries and in a top 3 school district
3. New developer property with 3 levels (we are buying the duplex down)

Financials:

1. Purchase price: ~$690k
2. Expected gross monthly rental income: $5400
3. Expected monthly operating expenses: $4100 ($300 Prop Mgmt fee, kept it lower for now, $770 taxes, $200 HOA, $150 repair etc., rest is mortgage). This is after a 20% down and a 2% closing fee.
4. Cash on cash return: 10-12% 
5. Not counting any appreciation, but our realtor says there's strong possibility of 3-4% yoy appreciation