Converting residential into commercial to make better notes to sell?

[Ty Hines]

I recently learned about the technique of buying residential homes having them rezoned and licensed as a business, i.e daycare and then selling them to potential business owners. Can anyone give me a little more info on this and is this really considered commercial property and also what about the appraised value?

I also would like to know if a note buyer be interested in something like this?
SFH residential appraised at $75,000
same SFH rezoned and licensed as daycare and note created at $200,000 with all the trimmings.
I am currently trying to educate myself on the note business so any and all information will be greatly appreciated.

I am trying to gain information on this subject any help will be appreciated.