Frequent hail storms pushing insurance rates up in that market. 

@Tom Rairdon If you’ve owned your short-term rental (STR) for over a year, it likely qualifies for long-term capital gains (LTCG) treatment, taxed at lower rates (0%-20%) compared to your 33% ordinary income bracket.

Death Rate: The death rate has been gradually increasing.

Although 3.1% is a great interest rate I tend to not get too caught up in keeping a property just because the rate is good.

The interest rate is not special nor is the 20% down (80% LTV).  

Quote from @John Warren: @Mordechai Chaimovitz cap rates and NOI are commercial real estate terms, and 1-4 units are not really valued in the same way.

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

New inventory and relisting rates have actually declined month over month which is allowing to pricing to remain elevated.

Higher inflation equals higher interest rates. 

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.