It could take you a month to find your first renter, then they stop paying after eight months, it takes two months to kick them out, then a month to renovate and find a new renter, and the cleaning and repairs cost $3,000.12 months of mortgage, taxes, insurance = $1,400 x $16,800Total income this first year: $1800 x 8 = $14,400Add four months of lost rent ($7,200) plus cleaning and repairs ($3,000) = $10,200 $14,400 - $27,000 = -$12,600If everything went perfect after this first year with no vacancies, no maintenance, no expenses, it would still take you 31 months to just break even.All investments involve risk, but it's calculated risk.

Start looking for a new renter immediately.

If you can do this by having a renter pay most or all of your living expenses while you live for free or close to it on a different floor you are setting yourself a solid foundation.

Quote from @Bruce Woodruff: Quote from @Paul Sandhu:  "busier than a prostitute on a pirate ship" = priceless :-) I told that phrase to one of my renters. 

Even without Cash flow, your renter will be paying down your mortgage each month increasing your equity.   

I have always wanted to build a real estate portfolio and I am working to clean up the property a bit (paint and small bathroom rehab) - and hope to put a renter in the property starting in Jan. 2023 on the higher end of rents (2.5K - 3K) Property is paid off, estimated appraised value: 265KGiven the current market conditions, would it make sense for me to do a cash out refi to get into another property within the next 6 months?

With fewer able buyers/renters, prices/rents come down.

It is in a class C area, and my minimum requirements are credit score 600+, no evictions, no smoking, renter's insurance required, and income 3x the rent.

The cost of a roof on a 3 story apartment building might not be that much different than the cost of single family ranch home with a similar footprint, but the 3 story may generate more income from 3 apartments for you after expenses than a single family home generating having 1 renter monthly.

Recently did cosmetic renovations after the pervious renters moved out What made you interested in investing in this type of deal?