Before you even address your original question.  

@David RobertSevere nicotine damage can require extensive cleaning, sealing, and even replacing drywall or HVAC ductwork.

It puts you in a position to learn the market, build connections, and spot deals before most people even know they exist.

Some people love that as the initial numbers look good, but probably over the long term they get tired of the common issues landlords face.It's not that hard typically to find a move in ready property, or even to find one that needs minor repairs, where you can capture the equity yourself vs the person selling it to you. 

At $10/hr thats $1600/mo so even if you spend $5k - get one deal its paid for itself.

but i also 2nd @Jay Hurst's sentiments - get a 2nd or even 3rd opinion on DTI/ full doc. i personally love files that are puzzles, i get some weird satisfaction out of figuring out how to make it work on full-doc, especially when my client has been told "no" before. if it doesn't work now, a good loan professional will help you create a path forward.

Likely will pay 300 plus monthly with a one year commitment, but I get my best info (even that is lacking) from there.    

I'd build up and go for at least 2 units but 3 stories is better. 3 story walk up apartments account for almost 65% of apartment developments round he country. this is what I'd recommend on your lot. this is 35' tall and we do it in columbus oh  Wow, I wish we had even $200/sq ft here in California.

Even if it's just part time, the key to figuring out how PM is done well is by being present around people who have mastery of the industry. 

However, the units I see myself living in all barely break even on cashflow.