My friend knows just about every contractor within 2 hours of us and can likely fix small problems that come up.

Most of the Phx pockets of small MF properties have been turning over for the past 5 years.  

US Treasuries will not see their credit rating improve, and will, within the next 12-24 months get another (small) downgrade, inching up treasury yields.

The size of the house is 3500 sqft, single story, and only a 4/3, and rather small at that BR/BA count for the neighborhood. 

Michael, that is not entirely correct.Some sponsors will set up a syndication investment/crowdfunded deal in a TIC or DST structure which can allow this.True, but it's done very rarely and for small groups, typically accredited investors.

Plus, as mentioned your risk exposure would be huge if you didn't have a contract in hand to lease, plus they won't want to lease from you, because they are a Sticky or capture tenant.Start small and Make Your Big Mistakes Early.

Inspection Results: Mostly small issues, inspector was mainly concerned with multiple cracks throughout the siding.

I see it a a long term small diversifying investment.

Does anyone have any experience with purchasing small commercial properties and renting out each individual office?  

With just 5% down (yes, I paid PMI initially), we moved into the main bedroom, used the small first-floor room as my office, and rented out the other three bedrooms on Airbnb and Furnished Finder.