If you are just starting out in investing in real estate, congratulations to you. Put yourself together a team of an accountant, attorney, Realtor and if you need it, a property manager. Some people prefer to manage their properties themselves.
There are books to read on this subject. The worst thing you can do is go into real estate investing uneducated.
Good luck--I hope your journey is delightful.
You can cashflow a property at $2600/mo, I would suspect, but there's so many other factors such as $needed to invest in downpayment, and improvements prior to renting, demand for housing in that neighborhood, reserves to cover vacancies.....I know some of the streets there are very attractive where the parking is behind the buildings and the tree lined street is mixed with owner occupied housing ....not a bad area to consider if you can answer these other questions for yourself.
When bank management approves the short sale, which it has in this case, typically the banks don't want any more offers, even if they are thousands higher, because it would mean going back to scratch and they want to close the file.
The other drawback to this property is it doesn't have central A/C. Although not a huge concern, it is a factor to consider.
But if you're asking about the rental market, I suspect most people believe the rental market is strong because there are so many foreclosures and vacated sellers need a place to live. But while that is going on, there are also more rentals on the market as sellers who are not in foreclosure and need to move may rent their homes instead of selling them. On top of which, with interest rates so low and prices falling, we have a lot more first-time home buyers in the marketplace who would otherwise be renters.
What sort of projection are you referring to over the next few years? Possible growth in the monthly rent? Possible growth in maintenance or operating expenses? Possible vacancy rates? Possible growth or appreciation in property value?
I would highly recommending conferring with a team of individuals prior to jumping in to this sort of purchase. Your personal financial planner, CPA, general contractor, property manager, and Realtor are a good place to start.
Good luck to you as you determine which investments make sense for you...