Analyze this deal: 40 unit MFH

[Will K]

Two separate properties for a total of 40 units, all 2br/1ba.

In a C-/D location of big city in the south. Average rent of all 40 units is $450/mo with $450 deposit. Tenants pay all utilities except water. (what average water cost assumptions do BPer's make?) Asking price is $480,000, was thinking of offering $450k. Would have it managed by a competent property manager.

Assumptions:
Management fees: 16%
Taxes: 3%
Vacancy Rate: 75%
Maintenance: 10% of rental income
Insurance: 0.8% of purchase price
Misc Property Upkeep: $100/unit per year

Money down: 25%
Inspection fees: $10,000
Improvement fees: $10,000
Closing Costs: $25,000
Total Money Down: $172,000

Going off a 60%/40% expenses to NOI ratio, I see an $81,600 NOI, and after the $20,000 annual debt service I would get a $61,600 cash return. This gives me a 36% cash-on-cash ROI. The property has a CAP rate of 23%.

Seems like a great deal, but the only catch is this would be my first property, and I live a 2-hour plane ride away. What does BP think?