They just started their own business and can’t get a traditional loan.

Up until recently, Pittsburgh has traditionally been an "older" population so that factor may have contributed to the statistical decline.

The coverage of the building is relatively small compared to the amount of coverage allotted to liability. 

You should be prepared for the rate/terms to be a little on the high end, FHA 203k loans have higher rates than tradItIonal FHA loans to begin with then through in a low 600 FICO and that will have an effect.

The monthly rent is comparable to other similar homes in the area. 

Thats compared to roughly 100,000 sales in the metro area.Purchasing a multifamily in the area is possible, you just have to have realistic expectations and come in with incredibly aggressive offers.

Otherwise he can purchase something on his own with traditional financing or just do as my daughter did and find a property for himself, then either turn it into rental when he moves to next duty station or flip it.  

Is it possible to get a hard money loan and have it refinanced to a traditional mortgage if I did not buy the property?

So in short to compare lenders i must have my credit run 4,5,or even 6 times?

@Joe Villeneuve I use the expected cash flow and any refinance events I get a lump sum of cash in 7 years and then the monthly cash flow decreases accordingly compared to the 30 year where I wouldn’t be able to refinance, I have to track the equity in each loan to assume when to incoprate a refinance.