With the cost of utilities and the level of comfort people feel is mandatory now there is no way I would want to be on the hook for it. 

If you just flat aren't comfortable with debt, then that's one thing, but I don't get the impression that's necessarily the case.

This i comfortable with. 

Because of my savings and lack of expenses, I'm in a very comfortable position to make my first move, but because my income is mid, I'm unable to meet the Debt-to-Income requirements to qualify.

If it's just slapped in the backyard, i'd imagine it may not make a big difference but if you create an environment around it, it could be different.   

Get out of your comfort zone.

It’s ideal for investors with some experience in real estate who are comfortable managing renovations and dealing with tenants.If you're a beginner, you might want to start with a simpler buy-and-hold strategy or partner with experienced investors who can guide you through the BRRRR process.

Very easy to get pulled into a bad property or an area you’re not comfortable with by listening to the wrong people.

Also make sure you are comfortable with some holding costs if the units don't get rented right away (if vacant).Also look into if there is rent control in the area that the property is located.

Be sure you are comfortable with the math and know exactly how much you should be getting depending on how the property performs at different levels.