Calculating on Down or Purchase Price Cost Basis

[J White]

Hello all, I've been lurking the forum for a while, but had what is surely a stupid question that needs answering.

I am looking at an off-market property in a inner-core suburb of Denver. Here are the numbers:

Price: $1.6m

25% down: $400k

3.9%, 30 year fixed: $5660/month

NOI: $91,200 (5.7% cap rate): $7,600/month

So, I guess my question is, is this a horrible deal? The cap rate is good, but the loan terms lead to poor cash-on-cash return. The area is primed for good appreciation since it is located very near both a large open space and stadium, but the DTI seems terrible.

Am I deluding myself and this is just a bad deal?