I think your response sheds more light on the common theme and probably the best answer to my original question and that is; saying Cap Rate is way to confusing to the buyer.

Can anyone shed some light on what kind of down payment, terms and qualification requirements we would typically be looking at for an SBA or low down commercial loan? 

A mortgage company would do the same if put in that position after foreclosing.I am hoping that you can shed some light on your experience now 10 months later with your purchase and any problems/pitfalls you have experienced so far? 

Account Closed comparing Minnesota (Twin Cities) to Michigan (Detroit) is comparing apples too cabbage, it's just so vastly different of markets as shown by you statement of "might make $800 - $900", I can rent nearly any rat infested bed bug crawling shed for $800+ in Twin Cities.

We now are thinking that in order to pass inspection we’ll have to demolish it and build something that is permitted (either shed or ADU).

Will my most recent pay stub be projected outward, or will prior W-2's be used (last year's, for example, is about $25k below the limit, and the one before that even lower).If W-2's are used I could still qualify.Could someone help shed some light on this for me? 

@Marc Rice appreciate your thoughtful input.From what I have seen a true BRRRR or an ADU addition are not in my budget in this expensive market.If you could shed some light on how you would go about finding a local lender who is able to finance a 1% down deal that would be great, as I have not seen that nor heard of anyone locally who has done so either.

There's got to be some surprise waiting for me that I just haven't thought of yet.Can anyone with experience in purchasing condo tax deeds in Florida shed a light on what I am to expect?

I have had good luck adding $600-$1000 storage sheds to the back of the properties and charging $35/mo. for them.

I am going to assume that the structure was originally a shed.