I am aiming to overfund the initial purchase if I can to cover property, repairs, assumed mortgage cost for months of no income (assuming 6 months max), and any variance.

just don't build refinance or build more efficiently or more apartments cover your debt better and don't sell. unless you are building spec homes for a profit and worried about Taxes sounds like you need to switch up the style of your build and build more apartments and hold 

Add $10K/yr in property taxes and another $10K/yr in homeowners insurance, and you can see why the $3200/mo rent won't cover your expenses. 

You'll want to consult a lawyer and pay to rewrite the HOA CC&R rules and an insurance agent to make sure you are covered. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620, many blemishes, but should have no evictions in last 2 years.

It was important for me to know that this unit would cover the expenses for the whole property at market rent while we were living there.

Plus, I feel like if something goes wrong, I’m out of pocket to fix issues because the property isn’t generating enough to cover even a new a/c. my thought on keeping it was to get my feet wet and make my mistakes on this thing.

Your PM should have insurance to cover it.

Section 8 can be a heavy hitter because there are so many guidelines that need to be followed yet and still it can also be rewarding so long as you treat your tenant the same way you would a regular LTR tenant, with screening, etc. 

Try this:  (Source:  ervicemasterclean.com/blog/how-to-get-dog-or-cat-urine-smell-out-of-hardwood-floors)How to Get Dog or Cat Urine Smell out of Hardwood Floors ...Pour the hydrogen peroxide over the stain and then cover it with a clean cloth soaked in hydrogen peroxide.