Commercial Loan to Conventional Loan

[Michael Workman]

I am currently extremely interested in a half way house the appears to be underpriced and cash flows very well. However, when looking at the lay out I have contemplated turning this 8 unit property into a Triplex, increasing not only the cash flow slightly but sky rocketing the equity.

QUESTION: Can a commercial loan be refinanced to a conventional loan if the property down scales to 4 or less units? What are the potential consequences of such a move? Does anyone have any experience in doing something like this?