If this is the property in Rocky Mount, you are unlikely to get your target price of $16k when the current owner paid $16.5k just five months ago, and now they have some carrying costs into with taxes and insurance. They would probably have to be pretty desperate to even let it go for $20k. Also, I don't know if you've seen the interior yet as there are no pictures online, which would lead me to believe the entire interior needs redone, we don't know the condition of the HVAC, likely needs appliances and probably a new roof within the next few years, so $16k for rehab is likely low. A big ticket item or two will easily eat half that budget.
Zillow rent zestimate pegs this at $615/month, below your expected $700. We all know the zestimate is far from being the end all be all, but it may warrant a closer look at comps in the area.
With all that said, you still may be able to fit this within the 1% rule, so it may not be a bad deal, but I believe you're going to need a heck of a lot more than the $32k you're planning for.