Looking at 7-plex new investor. I need encouragement. This works?

[Jonas Mai]

I found a 7 plex for $185k.   It has 4 1br and 3 2br apts.  Exterior is stucco, roof is flat and clad in an elastomeric foam membrane (one of my biggest issues).   The 2 bedrooms rent for $550, $550 and $575.  The 1br are $475, $475, $300 and $425 rents now equal $3350 a month, $40,200 a year.  All units are rented and there is a waiting list.  The landlord pays ele, sewer, water, phone and cable (I would like to make these more hands off), property mgmt. is in place and would like to stay for $3k a year about 7.1%.  Total expenses last year were $19,902.   I would change the 4 1br to $475 a month and the 3 2br to $575 these rents would equal $3625 a month and $43,500 a year.  A 15yr loan w 5.2% and 50k down monthly payments would be $13,341a year plus operating exp (which are rounded up for each category incl 5% vacancy) of $17433 (took the phone out) equaling $30,744.   So that gives me $12,756 a year in profit.    Elastomeric roof coatings last 5yrs and then need to be scarified and reapplied. 

The expenses seem high to me....I would have to change that somehow.  I am a new investor and I'm trying to get some encouragement....I have been looking for 3yrs!!  Help me grow a pair (if u think it is a good idea)!   What do you guys think?  Should I try to get it????????