Investor grade carpet, while looks good, does not hold up well to high traffic.  

Pier and beam houses usually have less rot that slab on grade.

I can think of several solid "B" suburbs here for instance that I'd give widely varying grades for wanting to invest in for the long term, yet they're all very much "B" areas! 

We try to weed people out with the info we have before spending money - we use a point system to grade the info on the application against our criteria, we do internet searches on Facebook and for mug shots, and make phone calls before spending money.  

And in good neighborhoods they know you will have better grades of materials.

I understand how to crunch numbers but with 300 plus doors in a C+ grade neighbourhood what is reasonable vacancy rates?

@John Souerbry my kids went to Juana Briones grade school..

.$2,700 for granite -- I could have gotten builder-grade granite and kept the old top-mount sink for $2,200, but decided on exotic granite and a new under-mount sink.$3,000 for painting -- the foundation is under a lifetime warranty, but the tenants didn't bother to water it, so it had to be adjusted and the walls and ceilings had cracks.

Given that the grade of the area and building you described, I would model it off of the facts rather than arbitrarily picking some percentage that sounds acceptable.

The pharmacy sets this up so that when options come up they either exercise or not and landlord has no leverage.