Our budget can easily afford the property if no tenants since we are debt free and would be paying cash.

@Jim KellerThis will not be a increase of $2500 to our marketing budget but a one time drop.  

I would say allow at least 10% over what your budget is as a safety net.I don't know anyone that bought a property and didn't have to put something into it the first year.Also a red flag is when the agent who knows the area says it's tough to find tenants. 

I don't know how big it is, what your budget is or how much of a green thumb you have. 

You'll want to calculate those numbers into your costs.No matter which way you go, you'll want to get some pretty tight quotes put together to make sure you're on budget.

Next steps are to build my budget/savings plan/business plan.

I would add another 10% to your budget to account for the unknowns. 

Choosing a market, deciding a property type...all those things depend on budget, your goals (do you want higher cash flow or better appreciation potential and quality, etc.?)

I’ve started a personal budget, began putting 25% of my W2 income into a savings account and read numerous books, including: Rich Dad Poor Dad, Think and Grow Rich, The Richest Man in Babylon, The Millionaire Real Estate Investor, ABCs of Real Estate, Go Pro, Lean Startup and I am currently in progress of finishing both of J Scott’s books and The Book on Investing In Real Estate with No (and Low) Money Down.

One you have that number then you can look for a house hacking place that fits into your budget.