I've been told by a few more experienced people that a commercial lender would typically use a cap rate of around 8% to determine the value, in which case we'd be able to pull all of our money out and still have strong cash flow. 

I would calculate a few things, to determine if you should hold it or sell it.1) What's important to you, financially?

I called every lender in my county and asked questions so as to determine what their "appetite" for lending was. 

These would simply be to determine your taxable gain.You will however have depreciation recapture taxes due, for the period it was a rental, whether you claimed it or not. 

Giving them the second cash offer takes this power away from them, makes them more confident in your abilities, and makes them feel still in control by having two options to choose from. 

We originally bought the home with the intent to handle much of the work ourselves over the course of two - three years which is within my scope of abilities.

Whats a couple good methods to determine local storage unit vacancy rates to analyze the need for more units in a market?

Can somebody explain exactly what this means and how it would benefit or hinder my ability to invest in this property?

They will lend on the property's ability to repay the debt instead of your personal ability like traditional lenders.

@Ashtyn Stevens wholesaling requires the ability to find and negotiate good deals.