In my mind, a house hack should create a very low ($500 or less) monthly housing expense or eliminate your housing costs all together.

On a whim I just thought I should check it since she never seems to have money, and low and behold it was canceled months ago.

If you have done your homework and the property is sound, there should be nothing materially wrong such that a reasonable insurance policy would not cover.If you continue to do your homework and screen your tenants properly, you should have a low risk of them destroying the property that an insurance policy would not cover. 

My concerns are I am currently working on my credit (low 600 Fico), I have limited savings and the house is in need of renovations to bring it up to date.

Note buyers love prepaid interest and balloons This gets their IRR up even if rate on note is low.

You have a low prop 13 protected tax base.

Therefore that’s a slow and essentially undesirable market to even think about buying in unless it’s a low income area.

1,125/mo rent = +13,500/yr-1,125 vacancy-1,350 repairs/capex (10%)-7,960 mortgage (110.5k @ 6%)= 3,335/yr remaining for taxes and insurance, or about 2.5%Are your taxes and insurance incredibly low in Savannah or did I miss something on my math?

I would rather see you taking a low down payment loan while doing  the minimum time as an owner-occupant in a triplex or four-plex house where the renter might at least lower your rent to make the debt payments, while adding value while you are there and managing next door places. 

I make a lot of money and my debt to income ratio is around 7% so I can afford a lot of house but I want to keep my risk as low as possible.