16-Plex Syndication Deal

[Mark S.]

I've been approached with the following deal.  I know I'll need to get more details/clarification on some things, but it's a start.  Interested to hear feedback from the community:

16 units (Two 8-Plexes)
Purchase Price: $450,000
Closing Costs: $30,000 (this seems high, but I'm assuming includes sponor's fee)
Total Price: $480,000

ASSUMPTIONS

Annual Rent Increase Assumptions: 2%
Annual Operating Expense Increase: 2%

INCOME

Rental Income: $9,500/mo
Vacancy Loss: $903 (9.5%)
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Gross Income: $8,596/mo ($103,170/yr)

EXPENSES
Property Taxes: $452/mo ($5,434/yr)
Insurance: $375/mo ($4,500/yr)
Utilities: $1,200/mo ($14,400/yr - hoping there may be a way around this, but I think included utilities are standard in this market)
Maintenance & Cap-Ex (15%): $1,425/mo ($17,100/yr)
Property Management (8%): $687/mo ($8,254/yr)
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Total Expenses: $4,140/mo (49,687/yr)

Expenses as % of Gross Income: 53.09% (numbers seem reasonable, but % seems a tad low; I've heard multi-family is usually around 60%)

Net Operating Income (NOI): $4,456/mo ($53,483/yr)

CASHFLOW
NOI: $4,456/mo
Mortgage (25% down, 5/20 ARM, 5% interest): $2,227/mo
Total Cash Flow: $2,229/mo

EQUITY ACCRUED: $10,082/Year 1
TOTAL RETURN: $36,837/Year 1
TOTAL ROI: 20.68%
CASH-ON-CASH RETURN: 15.02%

The return figures include the sponsor's/syndicator's equity stake and PM fees.  What do you think?