Good Investment or Not?

[Lisa H.]

I'm getting my feet wet for the first time in out-of-state investing. I am interested in a property that seems good. I will be buying and holding. If the offer is accepted, I would be purchasing the property for 75% of asking price (value). It passes the 1% rule. Actually it goes to about 1.5%. Cap rate at about 9.5% but the Coc ROI is only 6.39%. I still feel like this is a good deal because I think interest rates are about as high as they will likely go. Of course I could be wrong but I predict in a year or two the rates will have dropped to maybe around 6% and then I could refinance for bigger cash flow. It's also not a huge investment with the purchase price being only 80K. What are your thoughts?