considering buying a live-in revenue property. Can anyone tell me if this sounds like a good investment.

I am looking at a 5-unit character building, with one unit as a designated 'owners suite.' All 5 units have been renovated in 2012 and are really nice (fireplaces in several, dishwashers in all, character features, private laundry in 3 and the 2 others share a laundry room, all have a small outdoor space). The property has been maintained beautifully.

The price is about $2.5M and I would be able to put 25% down so am looking at a mortgage of about $1.875M. I live in an expensive part of the country. Rents for all 5 units would be around $12,000 / month, but I would plan to live in the owners suite, so without that one the rental income would be approx. $8,500. All units have their own meters.

I tried a 'cap rate calculator' and came out at about 5%.
oh, and the location is very desirable. Close to downtown in an old, established residential neighbourhood. I can't see having an issue keeping the units rented...

I'm nervous about risk if mortgage interests rise. Any thoughts??