It sounds like you won't have any trouble qualifying..In Oregon there are some tenant laws that can restrict active CAP rates, but those with current market rents (or that can attain them near term) can approach double digit return rates.

Be very careful when calculating for a refi or sale-  recent zoning changes have been confusing and ridiculously restrictive for student housing-  some properties are $50k for a reason, run-  it looks... bleak.

Lots of moving parts...and it's wonderful to be able to start with a blank canvas and design exactly what you want to build (as opposed to retrofitting based on the restrictions of an existing older structure).  

I agree with @Brooklyn McCarty ...Too much money to get in and too many restrictions.

Alternatively, you want to avoid a scenario where the tenant is forced to find someone to take over their lease since that means you'll have less control over who the unit is being sublet to (IF you don't have any restrictions against subletting in your lease). 3 - If someone's parent has passed, and its only been 8 days.

Sale-Leasebacks have inherent challenges because the tenant/seller is incentivized to market the property in such a way they get they price they want, but if the entity who signs the lease is weak and there's no personal guarantor, they could stop paying rent the day after you close leaving you high and dry with very little legal remedy.I don't know your market, but in my eyes, any 10% cap offering is either an extremely weak tenant OR a tenant that has very little term remaining with no plans to renew.If I were, you I would very seriously consider how much I like the real estate and what my odds would be of refilling the real estate with the same or better rent and/or a better credit tenant once this tenant goes belly up.

STR are becoming more restricted so I can see many competitors entering the market for MTRs. 

It's the same value as it was yesterday, which is very odd IMHO.

@Alan DeRossett California,   I get it but the rest of the country I don't believe has as restrictive regulations or commands higher rents due to those type of improvements. 

Speaking in front of the Senate Banking Committee yesterday, Powell was questioned about everything from inflation to odd political issues and grandstanding.