Protecting the tenant and landlord with insurance is a smart expenditure for peace of mind.- If the property catches fire, through no fault of the tenant, the owner's insurance does not cover the tenant’s personal property or expenses they may incur while the property is being repaired.- If the tenants cause their neighbors to suffer a loss, through bodily injury or property damage, their Renters Insurance will provide protection that would compensate the injured party.

I've also considered modular multifamily homes since they generally cost less and would reduce my capital expenditure concerns.

The new investment earns $24,000 a year, but the cost of the mortgage + the equity loan will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

Account for costs associated with capital expenditures such as the condition of the roof, foundation, and HVAC.

So the partnership would be to split the down payment and other fees, redcue capital expenditure risk in the future, and we would like to do some work on the basement & backyard which is also going to cost capital.

There's a HOA you mentioned - so there will be HOA fees and every 5-10 years there will be a "special assessment" (this is equivalent to capital expenditures on a LTR type house). 

Also be aware as @John Underwood mentioned, you need to budget for repairs and capital expenditures.

If you purchased that last year, you are going to be negative more than the $2k/month you estimate when accounting for all expenditures using the numbers you provided.  

Tisch Center of Hospitality, has released a series of CapEx studies showing hotel capital expenditure spending has been half of pre-pandemic amounts in period 2020-2023.The impending debt crunch faced by commercial real estate over the next 18 months has also been widely reported. 

There are also strategies that can be put in place to mitigate unforeseen capital expenditure (capex) expenses.