I always allow for 3-5 days of vacancy because I need time to properly inspect, arrange for cleaning and repairs, etc.

Usually tenants like that will not properly care for the unit, so I would make sure you will be able to cover the cost of turning over the property. 

Have rental increases of at least 2% go up annually each year.If you are building from the ground up and are not experienced have a fee developer help out but they can cost 100k or so per project.You could also not even construct the building but have the tenant do a ground lease instead.

@Kai Van Leuven developers developers developers developers developers.I have no idea what people are doing in the city of Seattle w.r.t. rental property, but it feels like every house that isn't an owner residence is immediately bulldozed and replaced with a mcmansion.

This happened to me once when I didn't properly screen the bank requirements upfront.

Maybe @Jay Hinrichs can help you, he's developed all sorts of projects. 

Do a risk assessment of these factors, then develop your strategy.You will have a stabilization period with possible negative cash flow, but once you get through it you will have a much easier time with your own tenants and lease. 

I am a little nervous but my hope is to connect with fellow investors, agents, contractors and buyers and develop long lasting relationships and partnerships with them to grow this business and make some money. 

Then you can develop a long term relationship with that banker and be on your way.Using this method, I was able to find a couple banks that can work with me on terms similar to what you outline.  

You can do it but properly doing it tends to cost a lot on legal fees to do it properly to protect both parties.