Cash Flow vs ROI

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I posted yesterday that I had been trying out the calculators on some listings in the Houston area (Cypress, TX). I liked to ask a hypothetical question and get feed back. 

My question is if a high cash flow is ever better than a low ROI?

In my hypothetical scenario an investor buys a home for $140K cash with an ARV of $150K or possible more. Rents the home for $1600 and cash flows $770 after expenses. According to the calculator the ROI would only be 6.48%. The cash flow is almost at the 50% rule (48%). So would any of you consider this property? If not, what am I missing in my scenario?