[Calc Review] Help me analyze this deal

[Brandon Handel]

Hey guys, 

Can you please give your feedback on this deal? This report is kind of a worst case scenario I think. The house is I believe 30% under market value based on Comps. Then rent in the report is set at $645 although I believe I could get closer to $695. rentometer.com says the average in that area is $688. It's close to downtown. I would say the area is around a C+. I think that could change though in a few years. The city is trying to close a $440m project within walking distance of this house. The project is to renovate a 45 acre campus into retail, office, apartments, and education workplace. They are expected to come to terms with the developers on the funding by the end of summer. If it carries through, development will start this fall. Property values have already soared on the other side of this project. None of my figures in the report have any reliance on the project getting funded though. That would just be icing on the cake. Worst case I'm getting at least $100 in cashflow. I figured in property management costs into the report for the future but for now I would be managing. That would bring my cashflow over $200(even more if I can get $695 a month.) My cash-on-cash return is over 15%. However, it does not meet the 2% rule. Since the other numbers work out well though, does that matter that much? It's at 1.48% worst case and I believe over 1.6% at best. Thanks for reading all this. I look forward to your feedback! 

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*This link comes directly from our calculators, based on information input by the member who posted.