From what I've been reading, cap rate is not a reliable metric for STRs.

What I'm hoping is to value add and refinance a bit later if/when rates go down.

With that comes different exposures and risks that they need to properly rate for.

The real estate market has shifted dramatically in recent years rising interest rates, evolving buyer and seller expectations, and fluctuating property values are keeping all of us on our toes.

Some of it is luck or taking advantage of opportunities (eg low interest rates). 

I would cross check their rental rates they are giving you with the Property Management Company.

The spread between what they're paying and what the market rate indicates is not that much.

You will owe monthly payments until you fix the property up, rent it out, and refinance to a more traditional 30 year fixed rate product. 

There is so much that goes in a business, rental rates, rental tax, inventory,  job costing, payroll, business analytic reports etc, QiuickBooks does handle what I have mentioned here. 

With rates coming down should help some sellers off load over priced properties and will help buyers get aggressive with good class A and B locations.