Review my deal: 3 Family in C neighborhood

[Jacob D.]

765k purchase price 6.5% (w 2 points) interest rate investment loan 25% down. Three 2bd 1ba apartments with a 6 car driveway and a large yard in MA. 2,550 sqft living space on a 8,000 sqft lot. 

$192k downpayment

$7,000 monthly rent (all section 8)

~$4.500 mortgage (PITI)***

$900-950 /mo average for: trash, water, sewer, general maintenance, snow and yard cleanup, and other utilities (2 heating bills are paid by landlord)

Seller pays all closing costs that they are allowed to, and buys 2 points

Current year long leases to be transferred: 2 heating bills are paid by landlord (~$200/mo each during winter; $50/mo during other months

This is in a C neighborhood within walking distance to the one of the biggest high schools in the town. It is on the better side of town, but <1 mile to a high crime area. Two commuter rail train stops are a short bus ride away (~1 mile). 

In general, the units were rented at top of the market. If rents were to come down over the year, this neighborhood would for sure decline. If there were another vacancy, I think it would take a good 2-3 months to rent in this area. I'm not sure how to factor this into the numbers. The current tenants are just OK. 3rd floor tenant has been there for years and takes care of the trash + yard. 2nd floor has been there a couple years and has had behavioral problems previously, but always paid. 1st floor is a new tenant and unknown to me.

Also, the apartments are very standard ~800 sqft apartments but need updating. Each needs new appliances + kitchen floors. The heating systems are old, but the water heaters were all just replaced. In general, it feels like a just collect the rent checks and turn a blind eye kind of rental. I don't feel great about the neighborhood, but long term it has potential and 5-10 years from now I can see this part of town improving.