Is there such a thing as being over conservative when analyzing?

[Adam Allard]

I had my eyes on a small 6 unit apartment complex that I originally thought was a great deal, but the more I analyzed it over and over again, the smaller the margins came out every time. I'm wondering how far off these calculations look. 

Some background to the below numbers:
The current owner stated the total monthly rent was $2800 and was 100% occupied in 2017. He uses only 3% vacancy, I don't believe that. 
He stated he paid $3360 in property taxes in 2017, I verified on the state's accessor's page and it was very close, within 10 dollars I believe. 
He stated that all utilities "are included in the rent" which means he pays the utilities, correct?
He stated heat was $3240 in 2017.
He stated electricity was $2700 in 2017.
He stated water was $900 in 2017.
(Utilities were rounded up on my part)

The asking price is $115K (in a very small town, but the biggest town within a 50 mile radius).

Monthly Rent                                          2800
10% Vacancy                                        -    280
Gross Monthly Operating Income     2520

10% Property Management                   280
10% Repairs Maintenance                      280
10% CapEx Reserves 280
Property Taxes                                          280
Property Insurance                                   200
Heat                                                             270
Electricity                                                    225
Water                                                             75
Monthly Operating Expenses              1890   

Total Annual Operating Income           30240 
Total Annual Operating Expenses     - 22680
Annual Net Operating Income             7560

Purchase Price                                    115000
Cap Rate                                                6.57%

25% Down Payment on Loan             28750
Loan Amount                                        86250
Closing Costs                                             300
Length of Mortgage                             20 yrs
Annual Interest Rate                              5.0%
Total Annual Debt Service                  6831

Annual Cash Flow                                    729
Monthly Cash Flow                                  $60
Cash on Cash ROI                                   2.3%

When I first saw a "6 unit apartment for only $115K" I thought it was a gold mine.
It beats the 2% rule.
It's close to the 50% rule.
The state's Estimated TCV (what the market value "should" be at) was $150,000. 

Are my numbers/ calculations far off, or is this property really this bad? It'd make a HUGE difference if the tenants paid their own utilities, but I would imagine it costing a fortune to get all units on separate utility meters.