This is more my style!

Account ClosedMy duplex is a side-by-side, but many multi-family properties in my area are the above-and-below style you mention.

I would say to stick with the style of the home. 

Allow time for your tenants to become familiar with your management style and for you to get to know your tenants.

I found 2 bedroom 1 bath cottage style house.

Hey all,I'm in the Madison, WI market looking to get the first deal under my belt.  I got introduced to BiggerPockets about 6 months ago. Since, i've been trying to digest all I can through reading a few multifamily b...

If not and you're just playing with terms, my "hunch" is to agree with @Scott Jensen ... if you're very comfortable to put $15,000 into making this happen ($10k cash you need to bring to the table plus $5k closing costs) without sacrificing reserves etc, then perhaps just pay the $15k on the smaller loan. 

Here are some of the numbers we were thinking about when considering this property.I don't have a lot of experience estimating construction costs, but it seems like what would be the most worthwhile for this property would be to rebuild into a SFH or a duplex the size and style of the neighboring properties which are estimated on redfin at $667K to $700K (those are 3br/2.5ba and 4br/2.5ba respectively). 

The other part is in your style choices and attention to detail.

4 Unit Building (one floor/ranch style) - located in Chicago suburbs.