Help Me Analyze This Deal - w/ numbers

[Alap Desai]

Hi all, 

I am looking at a property and have run my numbers, but just wanted to check with the forum to see if they agree and have any other input. 

It is a 10 unit property, fully renovated, all units are 2br/1ba units. Average rent is $780/month, fully rented. 

Asking Price - $700,000

RE Taxes - $15,000

Insurance - $5,000

Maintenance - $8,000

Utilities - $7,000

Misc - $2,000

PM - $9,600. 

After debt coverage, i am getting around 18% IRR on a 5 year hold. and 8.5% annual CoC return based on 20% down.

What are your thoughts? My numbers are conservative/high on the expense side. And there is option to increase through RUBS on the utilities. 

Thoughts/opinions? Thanks!