I will have enough reserves to cover the holding costs as well as some left over as emergency funds for the property.

The rent doesn't cover our mortgage completely, but covers a good 2/3rds!

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

So, for example if a tenant was giving you a specific type of issue that was not clearly covered in the rental agreement you simply add it with 30 days notice and then evict for breaching the agreement.

The deposit belongs to the tenant, not you, so it shouldn't be subject to any terms outlined in the PM Agreement.If you have a written contract, I recommend you dig through it carefully to understand what you agreed to.

There seems to be a glut of STRs in every major market, yet there are RE agents out there telling people that there is demand.There may be demand, but if the owner cannot book their place to cover the costs, how can RE agents be out there telling people that it's a good investment? 

I was offering one company resource and what they say on the subject. 

Learn how to wholesale properties, take homes subject-to, use your license to help others, etc.Good Investing...

Roof: 7-8kHVAC: 4-5kWell Filters: $0 -3kStain: 4-5kFurniture (Entire house): 8-10kAppliances (stove/fridge/dishwasher): 3KI think I've covered all the big ones. 

Since you will have what I assume is an atypical unit mix, you will likely need to look at what different unit size buildings are selling for.I.e. 5x 1/1s are $250k/door.  4x 1/1s are $265k/door and 4x 2/2s are $325k/door, you could assume covering to a 4 unit will value the property at around 1.12mm (3x265 + 1x325)vs 5 one beds being worth 1.25mm.