3 unit for 60k. 7k annual profit. Worthwhile investment?

[Andrew Michaud]

I am looking into purchasing a 3 unit building in a great location in Northern Maine. I am looking for some opinions on this deal.

3 unit building, all great tenants and fully occupied. 60k purchase price, 79k tax value. 

1 bed $550/mo

1 bed $400/mo

2 bed $600/mo

Total Income before expenses $18,600

Expenses

Heat $850

Water/Sewer $1000

Property Tax $1900

Insurance $750

Trash $500

Lawn/Snow $200

Mortgage $4500

10% vacancy $1860 

Repairs $1000

Total expenses $11,600

18,600-$11,600 = 7000 total profit per year. Which I estimated about $160/mo per door. Do these numbers work? Place does need a little work but not in the short term. Gives me a little room to increase value of property. I am a contractor by trade and will save thousands in repair labor. I feel like this place has a lot of potential in a few different directions. What do you guys think? Thanks!

[Andrew Johnson]

Andrew Michaud Lawn/Snow for $200 per year? Not likely. $1000 per year in maintenance? For units that rent out for $400-$500 per year? Not likely over the long haul. In my limited experience the lower you go in rent the higher the proportional turnover costs are. You could get lucky in year one and stung in year two, or vice-versa. I don't know the area at all, the quality of the property, etc. so it could be a good deal (what are the comps?) but my gut says you're underestimating your expenses.