In this case $1000 is 2% of $50,000 so it meets the 2% rule but again the cash on cash is 48%.not directly related to your question but CAP rate is the yearly percentage of the total capital in a deal that is recovered.so on our $50,000 house with a $400 cash flow the cap rate is 9.6%$4800 net income per year is 9.6% of $50,000In summary cash on cash can give you an idea of what your returns are while taking leverage into account, while CAP rate is better used to look at the viability of a deal with more of a birds eye view, the 2% rule is a general guideline to see if a rental stacks compared to others.

Others may have different view points.

Very often an issue has two different opinions and sometimes two people can have different views.

Make sure to view the Bigger Pockets book store: https://www.biggerpockets.com/store

One of the landlord/tenant attorneys in your locality would have a better sense of how the local judges would view the situation.

Would you suggest paying a contractor to come view the property with me to get an idea?

So, there's more to talk about before I could give you fully informed guidance, but at the bird's-eye view I'd say it makes sense to consider HELOC and fixed 2nd options on your current primary, then parlay that capital into the next investment purchase. 

@Curt Davis Thank you for that point of view, it was something I wasn't completely clear on as well.

I don't much care for yard work, maintenance, I like to travel, we have a great view of the city, & there is SO MUCH included with our rent.  

While viewing the home, I decided that I wanted to keep it for myself to serve as my primary residence for a few years.