So, starting with something that doesn't need work usually helps us understand what our tolerances are. 

If you want to stay in Phoenix, house hacking might be difficult with one full time income in that range unless you can tolerate living in a rougher area.I would look for a standard starter home, maybe even a condo or townhome, this way you can keep some cash on hand and hold onto the property for the longterm. 

However, thorough due diligence and careful consideration of legal complexities are crucial.The optimal choice highly depends on your specific project and risk tolerance so keep that in mind. 

That's what is good about a zero tolerance policy.

They understand late payment will never be tolerated and will lead to a eviction. 

With any investment there is YOUR risk tolerance.

What is your debt/risk tolerance?

Both house hacking and BRRR (Buy, Rehab, Rent, Refinance) are viable real estate investment techniques, and the decision between them is determined by your financial objectives, risk tolerance, and personal preferences.

If you have enough cash flowing properties which can carry the weight of this property should an event cause it to go from cash neutral to cash negative and you want to speculate on future appreciation or rising rents, I think the answer lies in your risk tolerance and end goals (don't you love the it depends BP answers). 

If they denied you just because your rentals showed a loss, but your actual debt ratio was within tolerances, then they have crazy rules that wouldn't be applied by most lenders?