Converting a residential property into commercial office space

[Derek Caffe]

I'm looking at a residential property that is zoned for both residential/ commercial use. It's over 6,000 sq. ft. and I'd like to use an FHA 203K loan to convert around 5,000 sq. ft. into office space while living in 1,000 sq. ft.

My question is, to anyone who has done this. What are the common challenges? I'm figuring renovations would be cheaper for B- office space conversion rather than keeping all 6K+ sq. ft. residential. Is that a safe assumption? Just looking for general advice on subject. Thanks in advance.