Jon Holdman and J Scott give some of the best advice on Bigger Pockets, along with a few others. Jon broke it down and you are getting around 12% cash on cash, nothing wrong with that number!
While there are dozens of financial terms used in Real Estate, terms like Capitalization Rate, Gross Multiplier, Return ON Investment, Return OF Investment, and on and on, the final number is HOW MUCH ACTUAL DOLLARS will you make that you can spend. For example, you can make 100% "Cash on Cash" on a Black Jack hand, but if your bet was $5, you only made $5.00. Or you can make only 1% but if you invested $1,000,000, you have $10,000.00 to spend. (most of the BP members can do better than 1% though)
The point being that as an investor, you need to have a TARGET RETURN that you are trying to make. For me, if I can make 500% of the 10 Year T Bill rate, which is currently 2.00%, I am happy. So anything that makes me 10% or more, with everything else being equal, I am happy. (being equal I mean a newer home, in a nice middle class neighborhood with a strong chance of long term appreciation).
What I have discovered about the 2% "rule" is that generally, it is an OLDER home, in a lower class neighborhood with a small chance of appreciation. I have a friend who bought several residential rentals in Riverside, California for $50,000 that rent for $1,200 a month. BUT, he has to carry a sidearm to collect rent, make repairs or post eviction notices. Sure, bigger returns with greater RISK, but that is too great of a RISK for me!
So just establish a rate of return you want, and go from there, don't pay attention to how much of the price you get in rent.