All 16 units would have to remain on same lot/deed forever (so in terms of value, I can’t capitalize on the duplexes being sold to conventional non commercial buyer) think financially it would be nice to phase it out one duplex at a time.

AND you can know put as little as 5% down on a conventional loan, which is a better loan anyway if you can manage the extra 1.5% down, does NOT have this test for 2,3 or 4 unit buildings. 

Timing is key—typically, I’d wait a few months post-storm to see where things settle, but keep an eye on local inventory levels and insurance trends.

Price and rent appreciation over time is solid in Sacramento, low inventory, high demand.

It's since been resolved4) I had planned for 2% Closing Costs, but the Closing Costs are actually 5.3%, which is quite the chunk of change that I was not planning on.  5) I also had found out 3 days ago that this was a DSCR loan, not a conventional loan.  

They recommended we do the conventional loan, what are your thoughts on the process buying a multifamily with conventional loan and just start renting all the units out.

Remember, you can put as little as 5% down on a house, duplex, triplex, or fourplex with a conventional loan.If I were you, I'd speak with a lender about your financial situation to understand what your budget actually is, then look for an inexpensive duplex.

Conventional lenders often allow down payments as low as 5%, especially for owner-occupied homes.

Bid personally, sell to my LLC and take a conventional loan and repay myself after 6 months?

They have utilized a number of financing approaches including: Minnesota Housing Finance Agency Tax Credits, Conventional, Grants through Duluth Economic Development Authority (DEDA), Duluth Housing & Redevelopment Authority (HRA) Assistance.Sharon Brown with Duluth's Life Safety office is a great resource as well when dealing with blighted properties.