It's definitely not a terrible idea to own real estate outside of a retirement account so you can take advantage of all the tax benefits, especially using the depreciation to reduce your taxable income from a w-2 job.

I am looking for the passive income and financial freedom. 

The extra five months of rent income would have covered 50% of the renovation and saved me a lot of time and struggle.

Quite literally, if the rental income is equal to or greater than the PITI, it'll qualify (with some exceptions of course). 75% LTV is typical, but I have worked with lenders willing to do 80%.

Good source of active income if done well.

As long as you are not understating any type of income - and I am taking vary broad view here - - and you are not, overall, defrauding the US Treasury.  

How certain are you about your rental income estimate?

Hi @Michael Behr,In my opinion, the rental income is way too low for this to make sense.

with ground up construction you'll usually see 50% of the land providing 100% of the construction . no income no doc and first time investors as well  

Worrying about property management is small issue in comparison to letting a tenant in who faked their income and past rental history!!!