Sanity check: 50%/2% rules fail. Could this still be a good investment?

[Jonathan Sowinski]

I am looking for some input on one of my first (potential) deals; I am currently under contract to purchase but wanted to see if the #s below make sense to other more experienced investors.

I am asking because I just came across the suggested 50% / 2% screening methods and at first look it does not meet their criteria. However, my due diligence (what I have used until now) shows it making more (not a lot) cash flow. Are these designed for certain types of investments?

FYI, I am planning on managing myself and making repairs/remodels (should result in higher rent) myself as well as needed. I saw that if this is the case you can get away using 35% which is closer to my assumptions. I have received historical expenses from the seller e.g. utility bills, management fees, new taxes based on sale price…and used it in my own spreadsheets but no not want to end up tweaking it to my favor (I do not think that I have if anything I have overestimated expenses). These are the #s “as is” but like I have mentioned there is untapped potential that makes it slightly more attractive to me.

Please let me know your thoughts, or if more info is needed…

Using 50% Rule:
8 unit (prime location poorly managed, definite room for improvement and higher rents)
Sale Price = $250,000 (30% down $175,000 loan amount)
Equity = ~$85,000
Gross Income (-5% vacancy) = $47,424
Operating Expenses (50% Rule) = $23,712
NOI = $23,712
Debit Service = $17,721
(So far our best financing looks like 30% down, 6% for 15 yr fixed for 10)
Cash Flow = $5,991
($62 per door shouldn’t I be shooting for $100+ ?)
Cash on Cash: 7%

Using 2% Rule:
Sale Price = $250,000
Total Monthly Rent = $4,160
= 1.6%

My Calcs:
Cash Flow = $826/month
Cash on Cash = 13%
Cap Rate = 11%

Do these seem out of the question, or within reason? Is this a good investment, I know that it is not great...but could it be good?
I just need some reassurance or warnings (this deal s*cks), my nerves are acting up...