The 10-year treasury (supposedly risk-free rate of return) is 3.455%. 

The risk here is actually lower than buying a 10 year treasury!

If you had a large reserve, you could put some money in short-term Treasury Bills (as short as 4 weeks). 

Im no expert on fiscal and private debt but from what I have learned and observed this year, As the US treasury auctions off more and more debt this and fewer buyers to absorb it, the coupon is being bid up consistently with almost every auction.

If they are well qualified, they would most likely just get a traditional mortgage at this point, and you could put your funds in a 1 or 2-year US Treasury and earn 5%+ risk-free.

Probably also good time to park money in short terms treasuries and make 5-5.5% for doing absolutely nothing

UPDATEI spoke with the local bank that I work with and they offered me these terms:-10 year note 2.75% above US Treasury Bond rate (4.34%)-Amortized at 25 years-10 year balloon payment.

That set the Treasury prices even higher.

The Treasury Secretary just told the media that unemployment might hit 20% as a result of the recession we're just now on Day One of - your mileage may vary, but do you think it will be better or worse than that wherever your rental is? 

I see 10-year treasury bond has a high probability of dropping to 1% during the next recession so I won't be surprised real estate would be trading in the 3-4 cap rate range.