Ultimately, while the guidelines allow it, no residential lender will allow more than 4 units, and no commercial lender will conduct a VA Loan, so it's never been done, and I don't see a way that it will be. 

This is a mixed-use building with 3 residential units and 1 commercial unit.

Now that I am in commercial real estate, everything I invest in is giving me forced appreciation.  

Commercial on a transaction you can have thousands of pages to review.

I'm a land broker in Southern California, I sell land to homebuilders, commercial developers, etc. 

It depends on the number of Units, Residential or Commercial, Apartment Complex or mix of Single Family and Multifamily.Under 25 unit  - Tenant Cloud, RentechUnder 100 - Then Doorloop/Buildium.100+ - AppFolio, Yardi, Rent Manager.Apartment Management : Yardi seems to be wildly usedSingle Family ( Mixed ) - AppFolio seems to be popularRent manager has a good customer support team.

The twist is that banks consider it a commercial loan and not a private loan, despite it being a residential property, is there a work around for this problem?

It is one reason that leveraging under utilized zoning to add a unit is often a better option than the ADU addition (the appraisal associated with ADUs being the other).You can always search for the other finance options (owner financing, rent to own, commercial loan, etc.).Good luck

Thank you,Wade keep costs low, we are a construction management new build general contract for 1-3 family and large commercial apartment buildings and you can keep the fee from a GC lower and who has more experience. don't take hiring into account. review who pulled building records. a 4 plex in central TN should be similar pricing to us your build cost wouldn't exceed a build fee of 100k. 

If it sounds like a commercial or paid ad, this is not..