You are looking for a needle in a haystack: a section 8 place with a vacancy that will not only take pets, but will take 3 dogs. 

Talk to them when you renew the leases and be prepared for vacancies if you change a lot of things or aren't flexible (ie on how they pay rent). 

Still possible to find a "good deal", and with vacancy rates sitting at 0.9% (as of Fall 2020).

Even if you have a vacancy of a few months with double the rent or more and VERY well qualified professionals renting it I kind of like it.

As a newbie investor, I know I need to stash away money for repairs, capex and vacancies, but my question is where should that money be stashed? 

I don't go as far as Douglas Spence does with notion that no vacancy, no Capex or maintenance statements are a reason to walk from an investment, but you should be asking questions of how and why.  

A 3% vacancy factor is your tenant staying 33 1/3 months. 3/100=1/33 1/3.

A note about our process - we run our numbers pretty conservatively for the ARV and rent, assuming worse case scenario:Purchase: $60,000 (listed for $75,000)Rehab: $65,000ARV: $130,000Rent: $1,400Hard Money Loan: 12%, 3x points, 1 year term - interest only paymentsReturn on Investment: 7.1%Cashflow: $342 (amount remaining after mortgage payment, 10% vacancy, 5% Repairs/Maintenance, 5% Capital Expenditure, 10% Property Management are paid)Purchased: March 2021When you refinance, most banks will authorize a loan for 75% of the Loan to Value (LTV), so we were expecting a $97,500'ish loan (75% of $130,000).

I have a few airbnbs and rent at a decent rate and 100% full, I offer really cute options and add value etc. 66% vacancy is alot, lower the price and have higher occupancy, go for long term value and increase to get traction.]

Here's my breakdown of the current prop im looking at:Listing price: $130kunit 1: 3BR/2bath 1329sqft $700monthly rentunit 2: 2BR/2bath 1329sqft $700monthly rent2 car garage used by both tenantsexpenses: 239/month taxes, 200/month water bill, 100/month insurance + umbrella policy, 50/month garbage, 5%/5%/5% for repairs vacancy and capXWith the current rents of these long term tenants it makes $132/month cashflow with a 4.34%CoCROI.