I always allocate cap ex (Reserves) when doing a spreadsheet to buy a property. 

If you invest in apartment buildings and maintain conservative underwriting practices by purchasing for cash-flow, securing long-term financing & allocating adequate cash-reserves, you have positioned yourself well for any recession.

For a small purchase under 200k in columbus we normally allocate $1800 for purchase and $2800 on the resale in closing costs. 

Overall I think an investor should allocation a portion of their investment dollars in Baltimore City as part of a well balanced portfolio, I think it has good long term growth potential.

Losing money in equities happens to people with an inadequate asset allocation, as they make the mistake to sell during a downturn. 

most importantly you are missing vacancy allocation.  5-8% depending on the area?

That city might be worth a small allocation of funds but it's very risky investing in any single asset, or location.  

I'm helping another client right now that is doing a 1031-exchange with $10M in proceeds from a sale, and she's looking a similar dilemma -- how do you allocate your cash. 

You could allocate space for every unit to use the basement as storage. 

Just a quick look, seems people on BP seem to allocate anywhere from 20-25% for vacancy, maintenance and capex.