@Gabriela Andrade, you definitely need to adjust your analysis as @Tim Herman recommends.

The townhome has actually 2.5 bath...I was looking at average rents for 2BR, just don’t see the TH hitting the 1% (slightly less) the only option I see is to adjust the offer to ensure I’m getting a positive cash flow...Your correct on appreciation, it’s not guaranteed 

There are hard money loans, non-qm, etc, that might not have those adjustments, but the STARTING rate is so much higher that Fannie Mae wins the rate/fee game 99 times in 100.

To me, a good cap rate doesn't adjust with the market environment. 

Not sure if you adjusted your number accordingly, but your pro forma expenses are very high compared to my standard numbers.Here's what I usually use:Vacancy: 8%CapEx & Repairs: 15% combinedManagement: 10%In your analysis, there is no budget for initial repairs.

Once you close you can adjust your financial position with an alternate lender.

Adjust.

Know your personal risk and adjust.  

Likewise, suggestions on pets and adjustments to rates.

Each lender has different requirements, is an 18 inch adjustment on a boundryline fence acceptable or is 24 inches this banks acceptable.