Starting out you really need CF and add you build your confidence and skills you mice more to both or just appreciation.As for your initiate needs... you have to make sure you are taking all your expenditures into account.

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

When the price of crude is high, the refineries are generally showing more profit and have more revenue to pay for long term maintenance, capital projects and other expenditures. 

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.  

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

I would try to negotiate some money being put in by the tenant and then raise the rent on both the old and new space which would include the expenditure made by the landlord repaid after 5 years.

I'm curious if there are any HOA fees  and you also did not include any 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. 

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

It looks like my expenses are $2,108 a month.Next I put in an additional 30% for Vacancy, Property management, and Capital expenditures it looks like my total expenditures are sitting at $2,740.40 meaning my cash flow is $204.60 per month.The Good NewsIt seems like it is a growing city.