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

I will be doing a commercial loan I would like to do duplex min. 4plex idealwould like property to be under 150-200 mosthave passive income 

If it can be rented out, you may be able to get a commercial type loan on it.

Hi BP,So I am looking to get into multi family properties in the pretty near future and I just wanted to get anyone’s 2 cents that owns a commercial multi family property and to see how you started.I have one rental property now that I live in (house hacking) and i am in the process of doing a HELOC on the property.

Is your rental a commercial property that will be rented to a business?

Unfortunately the bank loan market has become really tough, with the banks tightening restrictions, imposing difficult metrics to deal with and applying commercial rates and fees to my property.I've been able to get a basic commercial loan offer, not what I wanted, but what I could get.  1m loan, 5% fixed rate, 5 year term, 1.25% fees and legal up front, and a lot of paperwork and hurdles to overcome yet to ensure I actually get the loan approved.  

If you could not pass these stress tests, then you should reevaluate your portfolio.And as @Steve Vaughan stated, risky loans such as balloons, ARM's, commercial, and owner financed loans, called loans, etc. really throws a big risky monkey wrench into the overall equations.  

Luckily we live in a business friendly state that makes this information accessible for the researched business owner.

The ONLY way around that is to buy commercially zoned properties BUT I wouldn't even do that right now because they are likely going to find a way to cap those as well.

Move to commercial?