multifamily college town deal analysis

[John Bucknum]

Hi all, 

placing a 11 unit multifamily under contract tomorrow. in college town in Washington county, PA, has 11 units, laundry facility, parking spot for each unit. brick building with gently sloped roof. roof redone 4 years ago, electrical redone 2 years ago. was under very poorly rated PM in area, met the guy when seeing facility and seemed very eager to do the minimum.  owner has not rented it out this semester due to do some rehab, actually did most of the bathrooms and they are in good shape, carpet is awful, needs paint, kitchen cabinets and better lighting. lower level apt needs gutted due to toilet leaking from above. here are the numbers:

purchase price 330k

rents last semester avg=333/month, did not rent over summer, "I let them just leave their stuff til the next semester", my friend was seeing RED after this statement...

expenses

rents (if occupied at 333)=3663/month

taxes 2200

garbage =100 (actual quote from WM)

water and sewage 525

electrical=passed through to tenant

PM=started looking, but quotes at 8-10%

insurance= 300 (est.)

planning on ripping carpet out and going with vinyl hardwood throughout, new cabinets in kitchen and paint, fix lighting and general clean up. plan to get rents up to 500-550 month, lease term 1 year. interviewed PM and he said they take one month's rent for placing a tenant, is this typical? then 8% after that for everything. wife interviewing others currently.

any college town investors out there? love some feedback.