Anything that does come to market is trading around a 6 CAP, and it should be closer to 7.

If so this " buyer" does no have any idea what he is doing, 10% less cap gains, why bother.

However, if you're selling to someone getting financing then often times their lender will have caps to wholesale fees and seller assist. 

If this property is trading at an in-place 6% cap, and debt is being quoted at 7%, is it detrimental to your returns to go in with any debt at acquisition.  

I have mold in one of my units and the quote is 12k to remediate caused from water leaking from HVAC unit due to dirty air filter that the tenant didn't replace (really bad since they have cats)  I hear the cap that insurance companies pay is 5K, what a headache! 

In short.....whatever you avoid in paying taxes in a 1031.....you pay when you sell the replacement property....plus whatever depreciation recapture/cap gains apply to the replacement property. 

Interest rates were starting to rise and Cap Rates were low. 

For example what do I use to look for all properties in a certain area and find ones where cap is 5% with a rental? 

The implied cap rate for the property is 4.5%, which is ~10bps below the current 10 T-Bond rate.

While the 4.9% Cap Rate may not be high, it may be fitting for the risk/area.