Add another $300 or so for taxes and insurance and you're at $2465 PITI. 

Live way below your means and save the majority of your income.

No problem.. what I did with my ridgeland and Madison rentals and I had bought 12 new builds for the Gozone tax bene's post Katrina..

Since it’s a new build, I was able to negotiate some great perks, like a 5.875% interest rate, no closing costs, a fridge, blinds, and even a backyard firepit.Pros:Good school districtLow interest rateMinimal CapEx and repairs (because it’s a new build)Low insuranceHigh-quality tenants (due to the school district and being a new build)Cons:Lots of new builds in the area, which could drive down prices and increase vacanciesThe Numbers:Price: $290KInterest Rate: 5.875%Down Payment: 25%Monthly Mortgage + Insurance + Taxes + HOA: $1,480 (I got really low insurance since it’s a new build and Alabama’s property taxes are low)Property Management: 10%Rent: $1,800 (this is under market because I wanted to rent it quickly—most units in the area were sitting vacant for 100+ days.

That one is a big deal for rebuilding.I've also heard of property tax reductions for properties significantly damaged during the storm.Depending on the property and what you want to do, the hurricanes affected property tax, insurance, and permitting in a lot of ways.

My concern with declining values, increased inventory and a weaker economy would lower rental income and could potentially put me into a negative cash flow situation.

A small multifamily property is a smart choice for a first investment—it offers a great balance of income potential and manageable scale for someone new to the space.Don’t worry about being ambitious; it’s clear you’ve done your homework, and you’re already ahead of the game by setting a clear goal.

Use tools like AirDNA or Mashvisor to provide market data on projected rental income and occupancy rates, and make sure your lender works with appraisers familiar with short-term rentals.

This property gives me significant income, so losing it would be an extreme loss.

Almost every REMIC is in violation of it's tax status.