Closest rate I've gotten to this was a 7.2%.Thanks for the help!

There’s almost always a rate at which it just doesn’t make sense.

Quote from @Dinesh Nair: I am a Canadian investor with a US corporate entity- we closed on our first property and now working to find financing through a lender… however rates keep changing all the time.. is there a site to track rates ? 

With a low 4.75% rate but minimal cash flow ($50–$125/month), your equity could likely work harder elsewhere.

The "variables" you speak to could mean this is worth every cent of a 5.4% cap rate to "I wouldn't touch this for a 12 cap".  

In this case, since they are borrowing their payments, these would get added to the principal balance each month, and interest would be calculated on that.If, for example, the interest rate on the note were 10%, they would implicitly be borrowing their payments at that rate.

My suggestion is to find some real estate industry surveys (via CBRE or others) and look for the MF cap rates in various cities/states/regions.

I'm constantly juggling the rates for my Airbnb listings based on what my competitors are charging. 

I am curious: what are typical occupancy rates, and how do we measure and compare them?

You have no control over the servicing transfers.