I presume that there would be a lot of buyers with an appetite to buy a 2 unit property (i.e high demand) but the pool of investors would be lesser for large multifamilies (i.e. low demand) and as such, the large multifamilies would appreciate at a lesser rate.

@Bing Lin - I would look for the office CBRE, Cushman Wakefield, Colliers, etc brokerages and ask the brokers what kind of leasing volume they are seeing, as well as appetite for area, terms, style of office, etc.  

The specifics of the deal and the appetite of the municipality usually dictate which path is best.

This cycle continues to suppress available rentals. 

I called every lender in my county and asked questions so as to determine what their "appetite" for lending was. 

Ive been investing here for a couple of years and have found many different forms of investment properties to satisfy almost everyones appetite. 

You just have to check around to find which ones have the most appetite for that deal type.

Not sure if it matters, but the whole building and all units have a fire suppression system and other things needed for a commercial building since the 1st two floors are commercial, the city made us make the entire building outfitted with a fire suppression system and wireless notification.

Depends on your risk appetite too I suppose.

Not sure what your appetite for flipping is, but there is a lot of money to be made in the fix & flips here.