What percentage should be spent on management, vacancies, capital expenditures, etc?

@Jasmine Johnson it's a large time and effort expenditure here in Texas, but can also be quite useful.

Being in a condo the larger expenditures like roof and exterior are covered in the condo fee, but you'll still need to account for expenditures inside the walls of your condo.  

I tend to prefer commercial properties over residential in today's market due to competition and limiting capital expenditures.

I also have read that another potential benefit of this approach aside from the increased cash flow is the diversification of risk in the sense that it is unlikely that something major breaks on many of the properties at once, yet you are actively saving from the monthly rent from each unit as if the expenditure will occur (CapEx, Maintenance, Vacancy etc) I don't necessarily have a specific dollar figure in mind but it would be nice to get to the point of being able to generate $2,000 a month initially which would allow my wife to stay home with our young children and still be able to steadily save and make future investments. 

Last capital expenditure and do you have documentation?

@Caleb Godsey Your numbers are correct:However, you are missing CapEx reserves (5-10%) - consider Repairs and CapEx at 10% of rent, your cashflow gets cut in half:Make sure to account for all these expenses when evaluating an investment: 1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have some or all of these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)

After all expenses and savings for future repairs/expenditures - he might come out with 100-300 a month.

Of course you are correct, but closing costs are a one time expenditure and to discount all of it year after year against the ROI is not good accounting principles. 

Please thank him for his service for me.As far as this particular issue goes, forget the attorney, your claim likely isn't large enough for him to really burn any calories on.