Currently I own a property in Sacramento with enough backyard lot that has Alley access and my current Mortgage is at a 2.5% rate and don't want to touch or affect it.I am in the process of considering a lot split with a plan to build a new doublex unit in the split lot with hard money or a construction loan. 

I'm assuming COC, Cap rate, rental income? 

Also any tips on where to find the best interest rates on investment properties would be appreciated.

The best way to attract private money is by finding a great deal.

I’m also putting together my “dream” team and interviewing attorneys, title companies, lenders, real estate brokers, contractors and magicians so I’ll be fully prepared when the 100 postcards I send out to randomly selected people results in the 14 offers to sell their notes that represents the average 14% response rate to junk mailings. 

The CRE lending market is expected to recover gradually, with opportunities emerging as interest rates stabilize and maturing loans drive new borrowing activity.Some regional banks are certainly struggling while others are consolidating in bid to become national powerhouses.Revised CRE Lending Projections2024: 26% growth to $539 billion (down from previous 34% growth forecast)2025: 23% growth to $665 billion (slightly lowered from 24%)Multifamily Sector Adjustments2023: $246 billion (49% drop from 2022)2024: 21% growth to $297 billion2025: 31% growth to $390 billionMarket FactorsRecent moderation in interest ratesSignificant number of loans maturing soonProperty owners hesitant, hoping for further rate decreasesUncertainty persists in the market, particularly regarding interest rates and property owner behavior.

Are the occupancy rates, ADR, and occupancy growth trending positively?

One landlord I know told me that this can send a positive signal to tenants that they will likely end up embarassed when facing eviction and it might be best for them to move out on their own.

What are the pros and cons of each and what areas are best?

High upfront costs and interest rates from lenders can quickly eat into profits, and funding delays can slow down projects.