@Chris Kittle make sure you understand the Class of the property, so you can use appropriate vacancy + tenant nonperformance percentages.We recommend:Class A 5%Class B 10%Class C 20%Of course, we base this on our Metro Detroit market, so you may want to validate for the market for this property.

I smmsssuming vacancy is built into your $10kmonth.  

Some companies have these fees, as a PM, it's a bad look to charge vacancy fees.

I envision a clumsy turnover approaching summer where we have MTR vacancies because our calendar would not be open to book 3 month MTRs starting in April.

Is the eight unit apartment fully turnkey and rented or does it have a lot of vacancy / need some renovation? 

Some policies have vacancy clauses, and if the property is empty for, say, 60 or 90 days, your coverage may be reduced and you may not have the coverage you think you have. 

My biggest hesitations with keeping this property is the rental market is pretty saturated and I’ve heard of some investors having to significantly drop their rent or have prolonged vacancies.

I always prefer a vacancy to a bum.

We have only one vacancy now which isn't terrible it's only been vacant less than a week.  

This factors in both monthly rates and vacancy.- What are your expenses?