2% rule when house hacking?

[Larry Smith]

Hello BP, 

I am currently looking to house hack a duplex here in Toledo Ohio.

I am able to get a Fha Loan on the property because I will be living in it. The bank also has free 3% funding for houses in lower income areas( Not a war Zone). 

The purchase price is 24k. 

The bottom is already rented out for 465/ month

I will be living on the top floor. 

After I ran the numbers I the rent was at 1.76% of the purchase price.

The house in in good shape. The only repairs it needs are flooring in the kitchen and then paneling in the bathroom.

I will be making 38$ in cash flow a month. 

My question is, would it be worth it to go in for the deal even though it is only 1.76% of the purchase price?

 Thanks BP