There will be multiple markets you can achieve a 7.5% cap rate especially if you're buying with cash.

It's also nice that they have their own recommended insurer, those rates are much lower then what I would pay up in the northeast. 

Are they at market rent, or locked into below-market rates?

I pay about $2500 a year for each of my partnership returns with my CPA regardless of whether it’s a $1M deal or a $5M deal.I would save the partnership conversation for if and when you are doing much bigger deals.

In many markets section 8 is higher than market rate. and investors need that extra return to mitigate the risk of sec 8 tenants generally speaking.

It gives you insights into occupancy rates, average nightly rates, and revenue potential in your target area. 2.

Right now, you have a property with a great equity position, solid cash flow, and cheap debt (interest rate is low). 

Awesome conversation! 

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

But I just want to start the conversation so we can negotiate the terms so it's beneficial for both parties.