Prioritizing Appreciation vs Cash Flow (10/04/2022)

[Lucas Hunt]

I'm in Dallas investing in my first single family property. Bigger Pockets has groomed me to aim for a 10%-12% COC ROI, 8% at the lowest. Today I submitted an offer that was 95% of the list price and got beat out by another investor that paid 100% of the list price. If I would have paid 100% of list price, my COC ROI would have been ~2.5%. My realtor told me some investors have temporarily reprioritized COC ROI to the back-burner (due to the higher interest rates), and have shifted more of their focus to appreciation. Since interest rates have not caught up to rental property pricing, would it make sense to weigh appreciation higher than COC ROI when assessing deals nowadays? Can always refinance the loan later and was curious if anyone has pondered the same thing.