I have adjusted my numbers and looking at 6.83% so came to the same conclusion.We actually own a 20 acres adjacent to the 3 acre lot and plan on building our dream home there.

For example, get electrical up to date first since its a 1963-style ranch house.

My company is actually ICG10 Capital.

So there may be no actual restriction on TCO for residential, but because of the challenges of doing this for residential homeowners they may have internally decided to restrict it to commercial. 

You may think you know a lot about the data, but evaluating the actual house isn't the same. 

Those are all computer algorithms that can't take specific details into consideration like paint color, flooring, countertops, room layout, quality of neighbors, and many other factors.Use their numbers as a beginning analysis but then actually look at comparable rentals on the market and compare them to yours.

Do you have a sense of the actual scope that is being bid?  

I have done extensive research on the area on the population, schools, hospitals, jobs, and the age group I'm targeting, and I've seen all the streets and the whole town as much possible without actually being there on google street view but i will be driving over there this weekend to get a real vibe of the place probably talk to locals.I pray that another major 2008 does NOT happen while I'm incurring on my first investment property lol..

The third thing is to actually visit the site with your own eyes, ears, and nose. 

I would read the Actual subordination agreement online myself though.