Its not just the rate, but the uncertainty of the future of the rates.  

Investing out-of-of state is something that I have yet to do.

As a result, Wall Street takes a big portion of your potential profit.When I finally figured real estate out, I had most of my money tied up in a 401K.

I continue to cash flow on this house so what is my rate of return? 

That price will be determined by supply of similar substitute assets, and demand for that (type) of asset.  

If buy a rental property that I never live in before I buy my first home that is my primary residence, would I still be able to take advantage of first-time home buyer financing advantages when it comes time for me to buy my first primary residence?

The bank letter of credit guarantees the bank will pay the amount of money required.

But I want to maximize the potential of my next property.

Take care of the tenants.2. 

Verifying recent 2-years of rental history very important!