If you do not understand how NOI and cap rate determine value, learn it even if in theory it only applies to commercial RE.If you flip, you realize the gain in the short term.  

More generally, what is an overall strategy for a building on a commercial street with a storefront and multiple apartments?

Hello, I'm in a process of selling some portion of my residential real estate portfolio to fund a new commercial opportunity.

They said it is a no because it is a conditional non-recourse clause.Freddie Mac do offer commercial non-recourse real estate loans.

The property is zoned commercial but has been used as a residence since 1850 including as a duplex for many years (though I don't know exactly how many).  

If it is is a group home, chances are you are going to need a commercial sprinkler system and fire control devices(pull alarms) and panel installed.

Would you ever consider selling and getting into commercial investments?

Commercial residential MF has taken a beating.  

That's why they do it that way for commercial applications.I never buy the cheap junk they sell at Home Depot or anywhere else.

Combine this househacking with joint venturing on some commercial property around the same market (5-20 units) with a few other investors that compliment your skillset and viola, you will obtain 30-50 units in 3-5 years.