I'm a PM by trade, and know their skillets and quality range greatly.

I think your rents are optimistic and you will pay with higher vacancy and poorer tenant quality (trashed units) unless you are in a more desirable area.I think a bigger question for yourself is do you want to deal with the type of tenants that come with this property and this area?

If elementary school quality is a consideration, focus on Ditto, with Little Road being a solid alternative. 

Getting a good tenant reminds me of a term we use for buying high quality tools: "pay for quality and you only cry once; buy cheap and you'll cry a lot."  

Raising the rent is the wise choice, I would personally go to $800 if that is what the going rate is, however, you may choose to go to $750 to match the other unit (if comparable quality).

The quality of the neighborhood should give you an idea about what the cap rate should be, although I would aim for over 10 either way.

The numbers by themselves look good, but this says nothing of the neighborhood, the quality of the tenants, the items on the property that still need to get fixed sometime in the future, etc.

Individuals buying flips expect top notch quality work.

Quality of market-population trends, industry, growth, where the market is in the growth cycle, neighborhoods, price-to-rent ratios...

The risk is higher but the tenants will be of higher quality.