I think you have a viable shot at landing a PM&R residency if you apply broadly. I would also mention details in your personal statement regarding what caused you to fail those courses in your first year and what you have done to recover. Doing at least one PM&R rotation (perhaps at an institution that you would like to attend for residency) and getting a few letters of recommendation from physiatrists will go far. One other thing that will help is if you take your Step 2 CK early enough, get in the 240s or 250s and send in your scores with your application early. That will definitely get program director's attention and get you some (or many) interviews. A strong step 2 CK score will show your dedication to medicine and demonstrate a positive trajectory.
