@Michael HoustonSo cap rates are for commercial properties so they have no use in 1-4 unit values.

Our area has a good selection of hard money lenders, and every now and then, you might find an owner willing to carry the loan, often at attractive rates.

I've had smooth loans close with Kiavi and I've had rough ones, same with Roc.When Loans start to be troublesome:1) The borrowing entity docs are a mess2) The appraisal numbers are lower than expected3) Messy background reports4) Loans happening in an environment where market/rate fluctuating unpredictably 5) Your loan officer and their team are poor at their job6) Title issues that depend on county docs, that can be slow and painfulThere's more but it's Friday and I'm tired....

There’s a lot of construction, which could hurt both prices and vacancy rates.

Quote from @Roger Flot: I was reviewing some renovated listings in my area and one indicated that even though the house was originally built in 1920, because of all the renovations bringing the house to current code, that you could get 2024 rates on insurance. 

When doing a full due diligence on these companies, I found out that their trustpilot rating was 1 star and read several lawsuits filed against them, by multiple homeowners.

The trade-off is higher interest rates and points.

My question would be is a 6 cap the going rate in the area for that building.

The reason why I ask is because that could determine what loan options are available to you (and interest rates). 

What is your current rate and what are you being quoted?