At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.

As-is cap rate of 7.5% in my market (kc) would be pretty awesome to buy. 

My bridge rate is 10% and results in a $1,500/month PITI payment.The negative cash flow stings but is worth it for the equity.

@Stephen Fleming your cashflow probably won't be what you think it will be:(Have you factored in the new property taxes at homestead millage rates?

If you can get a better primary residential HELOC rate than you can a hard money bridge loan I would say yes.

I’ve been working with several lenders for DSCR loans, but I’ve found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate.

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.

Plus I recently got a brand new calculator, wanted to see what out of state investors though the most important aspects of deciding between to similar rates cap rates in 2 varied size apartment. 

Frequent hail storms pushing insurance rates up in that market. 

Based on what you've told us, your rate should be at prime (7.5%), unless you are over 80% LTV, then it would be prime +1.Jeff