@Carlos Oliva, there is honestly no crystal clear way of defining "commercial" versus residential.Residential is the end use.  

Price range, what you intend to achieve in the future, or the preference of managing the two rental units are some considerations for choosing between an apartment complex versus a single house to live in for life.

Expect to be a landlord versus money for nothing/ Passive income.

@Alan F.What a healthy and balanced perspective on W2 versus entrepreneurship.

Maybe you can run calculations on condos versus homes in your desired areas or within commuting proximity to see the differences short and long-term. 

The tenant can just endorse the check over to you versus run away with it.

Same for my properties here versus my properties out near Asheville. 

The Max you can ask for on an investment is 2% but that’s still a good chunk of money as a "credit" versus coming out of your pocket at closing.All of that above can help you not touch the majority of your cash if you have good credit and map it out in advance!

You likely would be paying ~2.5 times that rate on a new loan- prop 13 has your tax value as ~$600k versus a value of ~$800k.  

I would look at the ROE differences between what you can make now by selling, including the yield on that lump sum if reinvested in the current market conditions, versus what the property will be worth at a point in the future (5 years, 10 years, etc).