My question would be is a 6 cap the going rate in the area for that building.

Charge the tenants a higher rent rate and include utilities with their rent.

also we do not know what is going to happen with int rates, they are very high now, the economy is not good and it is not certain they will be coming down this year. we know there will be more responsible gov spending, so maybe rates will come down, no way to know...I think you need to know the market where you plan to buy well, and go from thereBest of luck

Many of these lenders allowing 2nds behind them are more expensive capital (10's - 13's in our current market [high rates - but now showing signs of coming down]).

I’m told taxes and insurance is lot and will rise each year and cash flow is hard to come by.

Plus, that is the cheapest that money will ever be for you.  2.65% interest rate? 

Everyone’s got the same problem: STR oversaturationPrices are high in most markets and if/when you do buy, your competition is fierce thus pushing down nightly rates and occupancy rates in almost every worthwhile marketGood luck fixing that! 

Even though there is low inventory, interest rates are high, and many properties don't cash flow, look harder there are always deals, you just need to find/make them.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

(Anything that isn’t your primwry first is only tax free on a pro-rated basis.)I don’t know how you could swing it but…If they gifted you the kand they would avoid their capital gains tax.