As mentioned by a previous poster, you have to run the numbers and see which makes sense to you because you are asking for advice on a very general scenario....the merits of which will depend on the details and numbers. 

However, if the appraiser was referring to the style of house, such as tutor versus mid-century modern versus Cape Cod versus traditional, etc, then yes, that has some merit.

Anyone know if there is any merit to this rumor?

Maybe bring an engineer with you if your contractor doesn't have engineering merits.

I'm wondering about the various merits of purchasing another Single Family Home,(advantage  a multi-unit (free of any HOA associations, ideally), or a commercial property for rent to another business (not housing my own business). 

I would also add that background checks and SEC violation checks are common and, although awkward to ask for, any person of merit should have no problem with this. 

Hey BrentWelcome to BPOne thing I often hear people say is that single family residences and up to 4 unit homes finance based on the buyers credit worthiness while the larger deals finance based on the merits of the deal.

Welcome to the BP forums.First, make certain that there enough equity in the property to merit all the work required of a pre-probate deal. 

You need to evaluate each property on it's own merit and take into consideration any factors that are relevant to your situation.Starting out, I highly recommed investing where you live.

I have looked at deals for a number of people in my real estate club and given my opinion on its merits.