I do not have any degree in business/ economics and because of this I would not know how to invest.

I am really sensitive to the economic environment up here and being careful not to over build.

I am a corporate guy without the time or energy to wholesale, flip, or manage properties.  

We do not like the low income to moderate income areas regardless of cap rate as they tend to have less expendable income in an economic downturn and are hit hardest the most.   

The 1st floor condo is currently utilized as a commercial office space and the layout is set-up without a full bath, proper kitchen, etc, but just right for a smaller office.The other 2 units are regular condos for families.I'm trying to figure out what option I am better off with:Option 1: Leaving the first floor unit condo as a commercial space, renovating it and trying to find an office to occupy it.orOption 2: Invest in doing a full kitchen and a full bath to make it a proper Tenant rental.Option 1 seems like it will be more economical but there is a risk it will take longer to find an office to rent the space vs a tenant, and the loss I take on finding that commercial renter may offset what it would cost to re-do the whole unit by investing in a full bath, kitchen, etc.I'm also wondering whether I'm better off having all 3 units be tenant-rental condos if it makes it easier to sell down the road or should I just consider keeping 1st unit as a commercial space and take the chance?

You look at the demographics and economics of the area. 

We will focus most of our energy on rehabs/flips but we intend to add a rental property to our portfolio every year as well.

Chris T.While we are not flippers, we do use a similar approach by purchasing tired properties and forcing appreciation: it is just rehab-n-hold as opposed to rehab-n-sell.When we are carrying out a deep retrofit on a newly acquired property, we will put a sign in the yard advertising another "modern, heathy and energy efficient home in the making"  with an indication of when it will be available for rent.We typically have the units rented before the renovation is complete.

Many people focus on the obvious stuff like raising rents increasing economic occupancy and so on.

Economics?