I've seen investors allocate 5-10% for capital expenditures (capex) and vacancy, but you won't have a clear understanding until you've owned the property for a few years and established a track record.

Buy the same amount(in regards to downpayment allocations) in debt notes.

In this universe, which I classify as groups writing $5mm checks+ and allocating in the tens of millions per year, they do not follow sponsors for years.   

Right now we have enough for a 25% downpayment on 2 $300k properties, and I'm just trying to find the best way to allocate those funds.  

So $163k in extreme overconservativeness (taxes) and miss allocations (reserve).

We allocated $35,000 to renovations, focusing on interior updates and enhancing curb appeal.

- What portion of the total budget should be allocated for marketing and insurance?

While you shouldn’t categorize all tenants and it’s the landlords responsibility to properly screen, the tenants who reside in better situated housing and pay higher rents are more financially responsible meaning lower rate of rent loss and will generally take better care of the property which combined will result in less time allocated towards management functions if self-performed or more favorable management fee structures if 3rd party management companies are utilized (which ties back to #1, as well).

Many successful active investors transition to passive investing as a way to diversify into new asset classes or markets and to earn back some of their time and still benefit from the positives of real estate investing.To answer your question - I would allocate a portion of the $200,000 to MF as I believe this is a good time to invest in an asset class that has recently struggled. 

A balanced approach—leaving some 401(k) funds for diversification while allocating after-tax dollars to real estate—can optimize tax efficiency and meet retirement goals.This post does not create a CPA-Client relationship.