Need help analyzing a commercial RE deal

[Darren S.]

Hey BP folks - so I'm considering my first commercial RE investment (5 units).  Here's the basics:

480k price, 25% down

60k annual rents 

6k annual taxes

3k insurance

3k utilities

Good location, low vacancy rate (assuming 6%)

Here's my big question - how do you think about the likelihood of rising interest rates?  I can probably get 4% now with 20 year amortization and a 5-year bullet, but do you all price in a higher interest rate, given where rates may be 5 years from now?  Should I use a 5% or 6% all-in blended rate for the analysis?

It looks decent on paper, but I'm wondering what I may be missing.  Any other thoughts on this deal would be greatly appreciated!