Wondering if quit claiming the deed back to myself evntually and the refinancing it under a non-commercial loan makes more sense in the long run? 

For non Commercial properties that time frame tends to be 3 to 6 months but again shop around, every lender has their own criteria

Roaches and other peasants that could creep over to your other tenants, replacing soiled carpets, holes in the sheet rock, litigation......Who know what your set back will be every time a tenant leaves.

Fannie and Freddy loan to individuals and not LLC's.2) Varying by bank, 3 months to a year on non commercial- as soon as same month as rent on commercial. 3) Yes, but you need to talk to the commercial department.4) That's what I do.

Cap rate does not apply to non commercial properties.

Well Chris M. guess with the non-commercial, My gripe is that I would expect to get a lower down payment, but when they classify my property as commercial, that seems to automatically require 20-25% down.Julie Marquez that is good information to think about and I will certainly ask the question next week, if for no other reason than to present as an knowledgable investor.

The one thing the commercial loans do not offer is the 30 year fixed at a rate competitive to a conventional non-commercial residential loan.Hopefully someone with more experience on commercial loans could provide more details. 

@Jeremi Singletary thanks... yes I checked the MLS, the most recent similar sold properties are from Jan and Feb 2017.I was also thinking of using rents (via gross multiplier method), but wasn’t sure how accurate that would be on a non-commercial property (duplex)ThanksErik

As of now I stay in San Diego and searching for a market where I can invest in small multifamily homes(non-commercial).

I find most non-commercial appraisers don't take an income approach - and focus on the "live-a-bility" of the place.