As soon as you pop that can of worms, be prepared to go fishing for existing issues with the property that may need to be brought up to current IBC, Residential may maen proper handrails and accessibility egresses, whereas Commercial may be a bigger pill to swallow going so far as sprinkler and fire suppression systems.

Worked well until one of my carpenters took some pills, sprayed high-gloss cabinet paint everywhere (including brick on facade) and then shot my refrigerator (yes, with a gun) when I fired him.

I feel like Neo when he took the pill and saw what the matrix really is.

With all the changes to local regulations (dropped the owner occupancy requirement, as well as other "poison pill" requirements) these units look nearly as good as a true multifamily to me, and often cost significantly less. 

There is no magic pill out there that gives ultra returns and is ultra safe there are many investments along a SPECTRUM of risk and potential upside with varying degrees of potential tax benefits and deferment strategies.