We're now up to $1,900/mo and the current tenant wanted to sign a full year lease so it's a furnished long term rental for the moment.

Quote from @Todd Goedeke: @Parmesh P. there is no such TDA paying 7% or even 6% long term,5 years or longer.One example I know of is NYC teachers has a 7% fixed with a maximum $23,500 per year currently. 

I'm currently planning to purchase a commercial multifamily building in Chicago with the proceeds of a 1031 exchange.

Currently, I am self managing all the operations.

Nd what housing is currently attracting the highest CoC and total returns potential - studio - 1bd, 2 - 4bd, or 5+bd?  

Figure out market rents, deduct expenses to determine NOI, deduct cashflow you want, plug remainder into mortgage calc at current interest rate, then add lender's required down payment.That is how much you offer!

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

I currently am a new landlord.

Am I doing something wrong when it comes to determining the current value or even the arv of a home?

No, it is inside of an HOA neighborhood but the current regulations only restrict rentals under 30 days stays.