My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

Optimize now to fill the vacancy quickly.

For example, your market is experiencing vacancies at 5% or 7%..

It depends on your financial strength, the quality of the property, how many properties you own, etc.I like to start with one significant expense and three months of vacancy.

In addition to your down payment, plan for closing costs (around 2-5% of the purchase price) and set aside at least 3-6 months of expenses for repairs, maintenance, and vacancies.

This is after covering all expenses and setting aside a certain amount for reserves to cover future expenses like capex or vacancy. 

For example do you have a great w2 and can you afford to cover costs of a major repair or 3 months of vacancy?

We're hoping to be able to only have 1-2 months of vacancy so we can turn it and keep the train going. 

However I like to run my numbers conservatively and account for cap ex, vacancy, maintenance reserves 10/5-7/5-7% respectively.

Even one vacancy or non-paying tenant could potentially be a major problem.And yes, there were vacancies, and non-paying tenants, and major problems.