For emergencies, I could move money from my 401k to an IRA to cover vacancies and capital expenditures.

With $60-70,000 worth of upgrades including capital expenditures value will stand at $800,000.

You certainly could include 5% capex, but this seller has not as the home has been recently renovated or newly built, meaning you would not expect large capital expenditures within the first 5 years at least. 

You will need to maintain the property with repairs and eventually capital expenditures as well, plus rentals don't stay occupied 100% of the time and renters don't pay 100% of the time.

Cost Side Analysis: Understanding operating expenses, capital expenditures, and strategies for effective cost management.2.

Most of my monthly expenditures auto process around the tenth of the month so I have to keep twice the normal capital in there to ensure my expenditures don't process prior to the rent payments.

Get a deep understanding of what the income and expense for the properties are and try to identify future capital expenditures that might need to be reserved for.

BUT, a capital expenditure or some vacancies & your ROI can be wiped out.

The leases are typically for the tenant to pay maintenance, not for them to cover capital expenditures.

Factor in property taxes, insurance costs, and maintenance expenditures to ensure your investment aligns with your financial goals.Take Advantage of Financing Options: Explore FHA loans for owner-occupied properties or conventional financing options tailored to multifamily investments.