We are just speculating on the upward moving of this market because the house price keeps rising and there are organic factors that support it so in a moment we think negative cash flow can gradually be covered by picked up rising rental rate, but i guess its not financially sound on this deal

Overlays are extra rules banks put on top of Fannie/Freddie rules to be more...selective...that might be a nice word for it. 

I’ve heard of a rule/law in Texas for non licensed individuals.

Applying the 1% rule, if the average rental rate for a given area is $1500, but the home value is $225K, that's probably not going to Cash Flow since this property would require at least $2,250 monthly rent to meet the 1% rule and make it cash flow.

@Adam Hale based on those numbers the 1% rule applies so it seems alright, but there are other factors you have not mentioned that are critical. 

Unfortunately this is a long distance rental so we broke rule #1 of being a landlord and depended on a 3rd party to provide us with updates on the property's condition.

You probably won't be able to rent it seasonally if you plan to follow the 6 month > rule. 

Caveat...all depends on what you know but with the 50% rule showing negative, the need for you to dump 72,000 in it,  and your optimistic outlook only showing 6%, i'd park my money somewhere else and look for something better.  

I'm inclined to lean more towards the idea that that's the exception to the rule, but it certainly shows that outcome is possible.

Rules like the "2% rule" often force you into 20k rentals.