I realize how this might be a big negative for you but I tend to be realist. 

Not sure where you came up with the $700k number and I’d be interested if I’m mistaken.Also, 2-3% is not realistic.

Thanks,Corey L I've had clients list it -- without the property address, only neighborhood -- during their due diligence period just to gauge interest at the investor's assumed rent rate and ensure that it's realistic. 

Whether your offer is realistic would depend on many factors.  

Run realistic numbers and see if you cash flow/hit your target ROI or cash on cash return.

It seems like it should give me an edge of I'm smart with it, but realistically should I take risks with my first property or maybe hold off and do it on my second property?

Once you've gone through quite a few, you should have a realistic estimate of how many rentals you'll need to get that 8000 each month.

In your situation having a paid off property is only compounding the problems on what is actually a very poor choice for a investment income property.At a value of 350K and realistically assigning a opportunity value of 10% to that equity it is costing you $2900/month in lost income on your cash.

I do, however, want be in a position to identify and act on a deal if one came my way as soon as possible.Are my goals realistic or should they be more aggressive?  

in todays market rentals are returning 4 to 8% realistically  in the Best B to low A areas..