If you're not sure on your budget, the place to get started would be talking to a mortgage broker to see what the max loan amount you would qualify for is (sorry if this is too obvious and elementary, and you may be paying cash because money is no object for all I know, but my assumption would be that you'll take advantage of the low money down financing available for owner-occupied which is a big advantage of house hacking, and that your price point is entry-level so I'll base my advice on that). 

Is the ~20k/year assumption correct?

I'm a licensed RE agent, paying cash, making the assumption there's added value, and potential profit, in a prepped lot ready to build on.

You are likely “benefitting” from new townhouse/condos being built in the area under the assumption of appreciation by gentrification.

The purchase price will be $60,000.My assumption is that I am paying down (skin in the game) $6000. 

Is that a fair assumption?

I made an assumption that Jerryll only did wholesaling as that is the topic here and most of what I see you respond to so that is my bad.

@James Dargan, I'm not terribly certain if you are being facetious or not, but I will answer the question with the assumption that you aren't. 

I would only try to defend it if i could vet every assumption i listed above.

I've seen folks claiming conservative underwriting because they're supposedly using conservative comps for rent assumptions, whereas in reality the comps were totally unrealistic, and were located in significantly nicer neighborhoods.