Make an offer on it (even if it is 40% below ask) and say you'd be interested at that price point.I would be surprised if their commercial valuation is not severely flawed if it results in a value 40% higher than a residential valuation in the same area.When somebody refers heavily to small multifamily property as "commercial" it might mean the property actually has some preferential zoning that would allow it to be used as a business instead of residential rentals.  

My biggest flaw that I ran into was learning how to estimate repair cost, which in turn led to some of my deals not being great deals.

Often more deals are closed on follow up contacts than initial contacts.2) When they call, try to uncover their "why".

I tripped over this article the other night, which sums up a lot of what I've been thinking about REI lately: Investing in Real Estate Won't Build Massive WealthI think there are some pretty obvious omissions or flaws in it, most notably that the author is looking at ten years as an unbearable amount of time to build "massive" wealth, but that it also hits on some very important points. 

As an agent in a competitive market, VA offers are already problematic due to the inaccurate but commonly held perceptions that:1) The borrower doesn't have enough money for conventional and thus is at risk of being unable to close in case of a low appraisal or income issues during underwriting.2) The VA appraisal, often called a VA inspection, will uncover arbitrary but costly problems that need to be fixed before closing.This can be compounded if buyers are trying to use some of these non-local, call-center based lenders who are unable to accommodate quick settlements.

Lying about rental history is the most often uncovered lie in my rental applications.

Are there flaws with this strategy that you recognize?  

The flaw in the latter plan is that you may need to raise it by more than $50 next year if market rental rates keep increasing. 

Try your best to uncover their situation, find out what problems they have, and close them if the solutions that you have to offer will solve their problems.

@Eric Schrader  As both a real estate investor and an enrolled agent I concur with the advice provided by @Ted LanzaroNot having an Enrolled Agent or CPA on your team to help with these questions early on in the process is a fatal flaw from my experience.