Over the long term I am comfortable at 4%.  9.4% not bad return but …Residential RE is not passive even with the use of a PM.  

There will always be storms in between but not to the level of catastrophe that these once every 40 years or so storms bring.From a real estate point of view, after Camille most of the focus was to rebuild the residential that was destroyed. 

It’s in an area that was recently rezoned for mixed commercial/residential, so I’m thinking it is a tear down with good rebuild potential.

Mixed-use fairly simple need to ensure the percentage % of the commercial space versus residential is within guide lines. 

I'm rethinking my verbal contract with a guy who did a complete renovation of the bathroom on the upstairs residential rental property of my duplex.

Maybe that math is a bit over your head but it is simple and actually you take usually 80% of the improvement and divided by x years (based on residential or commercial) to get the proper amount for the tax right offs and you still have so many more deductions, so let's not brush off that subject. 

@Mark Humphrey yeah, this is more of a residential forum. 

Other states you have to be licensed for residential, but not commercial. 

I believe with my background in residential construction, I'm positioned well to enter in to the space.

Here in Louisiana the Department of Health and Human Services Division of Health and Hospitals most License Adult Residential Facilities of any kind plus, a Certificate of Need is required.