I recommend you go to the source and educate yourself on all the landlord-tenant laws, particularly in an increasingly regulated state like Colorado.Here's a good starting point: https://doh.colorado.gov/landlord-rights-and-responsibilitie...

Not likely), vacancy (@ 8% for me), and a possible PM (10% normally).I recommend you reach out to a local seasoned investor and have them run your #s with you, as the #s depend on how you manage it (how hands on you are) and also local pricing.

We would like to refinance as soon as possible after the build to recover all or most of our initial investment.

I'd also like to plug Bigger Pockets because of what you said, but also because of the education you can get here on the website.  

@Jai Windish I don't know the neighborhoods of Peoria, but what about something like this: https://www.realtor.com/realestateandhomes-detail/1025-N-Uni...?

Commercial liability will only cover liabilities like lawsuits right?

There are also a large number of accountants we work with who say that as long as it is done at arms length as a business like transaction then they are fine with it. 

Prices in Detroit are likely to keep going up.

Some brokers (like this one) work with 220+ lenders.

Would highly recommend @Keith Mintz for this case, he knows San Diego like the back of his hand.