On a normal financed property the equity would only be 20-25% of the property value.The cap rate is the ratio of the NOI to the FULL market value of the property.Completely different and should not be confused. 

After the last draw the loan converted to a normal commercial loan (5%, 20 year amort).  

It's a little different investing there as older homes (these are 100+ years old) can bring on a lot more expenses than normal.

Rent 1500 to 1600,  we are looking to rent it to section 8 tenant, The inspector will be there next week  my concern is because here there are no too many Frame houses (Frame houses are like houses in Maryland)  most of the properties on South Florida are build with CBS (Concrete block System ) Normally if the property were with CBS there will be no problem but on a Frame house i am not 100 sure

We are now looking at more purchases using leverage in our SDIRAs - what we are finding is that we can borrow with about 40% down instead of the normal 20%ish outside of the SDIRA.

I thought that these houses couldn't be sold easily.What makes me feel fishy is that  these houses were sold very quickly and usually within 1 week(I normally saw a sign which said "Pending").

I now plan to convert this traditional IRA to a Roth IRA to take advantage of getting myself a tax shelter I wouldn't normally qualify to obtain.

Which is counter-intuitive, normally Fannie is more generous to owner occupants than she is to investors. 

My goal is to work no more than 40 hours/week at my normal job and still be able to provide for my young family.

Investors normally use the term only when referring to multi-residential or commercial properties.