Settlement may be caused by undersized pier bases, water ingress into the crawlspace, expansive soil, etc.

Here are some tips on how to cut costs and keep your property above water!

I need to replace the kitchen flooring in a condo due to a water leak.  

There are markets that are seeing massive growth, which therefore you could call "a better market", however at the end of the day the grass is greenest where you water it.I'd recommend building those broker relationships 1-by-1 or invest passively with an experienced sponsor team to get access to other markets outside of your area.  

What are you going to do if they move everything out and then you find the massive water damage, wrecked floors, and damaged walls?

Which looks like a water damage. 

Water and sewer are expensive in Portland as well and I pay that as the landlord. 

I would factor in a certain % each month for capital expenditures, such as a new hot water tank, furnace, etc. 

Water heater, roof, HVAC, paint, flooring, siding, windows, etc.

Otherwise, you could look into non-conventional loan options (outside of Fannie/Freddie) that allow for less than 20%, such as local credit unions.As for your numbers, you're missing a few important components; the big items would be maintenance, CapEx, and utilities (water/sewer/trash) for a 4-plex.