RoR - 500 Error, what am I missing?

I’ve set up a new VPS with Dreamhost for a rails application. The application is new and has not been created. I went through the process/instructions for getting RVM setup and I have Ruby (2.3.1-p112) installed and rails installed.

I’ve set up all the options in the control panel -> manage domains with:

Web directory: /home/username/
Passenger is checked
RVM is checked
Custom path is /home/username/.rvm/wrappers/default/ruby

(note I actually used my correct username instead of /username/ in the custom path)

Then, I started a new app: rails new

I can see all the files, but, I’m getting a 500 internal server error when going to

Any ideas on this?