While we all kick around the idea of a cap rate, it really is not an actual assessment for the use of funds nor is it usually computed properly as the alternative uses or opportunity costs of money are rarely considered.

Debt payment has zero to do with a cap rate.

Price drop last week to 99,900.At 99900 it has a cap rate of 12%. 

Owner occupants receive a  homestead discount as well as a cap the yearly increase in value 

These do have lower down payment requirements, but there is a cap on the allowed loan amount depending on the number of units.

The down payment can be as low as 3.5%, but this loan has certain limitations and requirements, including restrictions on the types of renovations and a cap on the total loan amount.Bridge Loans: A bridge loan is a short-term loan used until a person or company secures permanent financing.

On the other hand, if I had a capable team working alongside me, I would be able to seize opportunities without jeopardizing the effectiveness of my establishment.

Where did they get a cap rate to use seeing that cap rates are for 4+ units? 

Im seeing a cap rate of 6% correct?

It's an issue of extending the useful life of a cap-ex item.