Looking to get my first rental but struggling to reason about CoC

[Jason Switherspoon]

My cousin is selling her townhouse and she knew I was interested in getting into real estate, so she offered me an awesome deal (or so I thought). She would sell me a $275,000 for $235,000 and all I had to do was cover all of the sale documents and closing costs. 

I ran the numbers over and over, but after the $230 HOA, the CoC looked to be realistically at 5.5% or more optimistically 7.5% if rent hit near the top for that area. These returns are with me personally managing the property.

I have watched web presentations on this site and listened to podcasts about how to get started, and that CoC return just doesn't seem to be high enough. Obviously the 40k of free equity here is amazing, but an optimistic CoC of 7.5% ended up feeling so low for dropping 53.5k to get in the door. I ended up NOT going with the deal.

Is there a CoC value that is widely considered to be good for investment properties? Some simple googling says 8% is considered ok, but lower than that is not worth the effort.

PS: Here is a link to the numbers involved in the deal: https://i.imgur.com/f1iEzcv.png