How's the appreciation like in the area and economics?

Not simply in terms of negotiations (because a cash buyer looks at the value of the property, while a finance buyer looks at the $Down and $Monthly and right now those are SERIOUSLY on tilt), but also in terms of Currency Risk.Regardless of what we personally think is going to happen as a result of rampant "money printing" and helicopter money economics, the thing we need to understand is that Real Estate > Cash because real estate buoys with the economy it is in (for better or worse), but Leveraged Real Estate >> Cash because you minimize your cash in an investment and use fixed-rate dirt-cheap interest rates to functionally hedge your bets against inflation. 

Does anyone have any experience on buying a first rental home in the current economic climate where interest rates are below 3%.

With the higher population density and strong job market, you will have more insulation than in the secondary market from any economic changes while experience more long-term benefits that come from being so close to a city center (rental and property appreciation).

This artificially altered the true supply/demand ratio Very low interest rates that became lower to spur the economy to combat the economic impact of Covid Realize that both of those reasons are Covid related and have resulted in a current price in excess of what would have otherwise occurred.

A short-term hold is OK as long as you can demonstrate your intent was to hold for investment but there was a business, economic or other reason for the quick sale.  

The Fed has stated they will not change policy until we are on solid ground with economic recovery.

As far as pricing or interest rates go, all of our investors publish rates daily, and also adjustments through out the day, based on what is happening on Wall Street and other major economic news in the US as well as in other countries.

Also given our economic climate with COVID-19, low inventory, and inflation, we could sell the property and make about 70-100K.

These are presumably the few things that it makes sense from an economic / risk assumption perspective to have the tenant assume / perform.