Cost effectiveness? 

If renters find out your utility costs are high, they will expect a lower rent to balance it out.

Prices in relation to rent are too high to have the cushion that was available before. 

There is always risk, and these are highly risky and regulated techniques.

If you are looking at a 30 yr fixed DSCR, high 8s-10s depending on LTV, PPP, and Unit Count Rates highly depend on the type of loan and your qualifications.

Sometimes, buying an existing property can be more cost-effective and less time-consuming and maybe require slightly less permits, etc. 

On the flip side, the margins aren’t quite as high as with rehab projects.

But the level of negative cash flow that you're talking about is quite high and it sounds like it's not something you're comfortable with and thus should look for something else.

Highly recommend you DM @Samuel Eddinger and buy him lunch to pick his brain!

Your income isn't high enough for it to make sense as a rental and the closer you get to your residence limit the greater pressure you will have to sell it before losing your exclusion in whole or part. 500k right now can make $15k per year income with zero maintenance or tenant risks.