Consequently, here it is conceivable your property taxes could be lower if the townhouses were merged into a single property.  

In answering a question in another thread, I realized my ROE in a similar building to yours is lower than I could get in a REIT or similar security.

I personally would use the money to flip in lower priced areas where it is easier to find deals, some local-ish areas I think are good include: Rialto, Yucca Valley, Bishop.

Disadvantages - more risk only one income stream when you go vacant, cap ex cost more because it’s not shared by two or more income streams, generally lower cash flow than a multi family. 

In my case at least, there are permitted uses in a zone which are listed, but if the existing use of the property isn't the use you plan on even though it is permitted, then it goes to the Planning Board, a lower hurdle. 

If you can, I would always try getting owner financing first as it allows you to get easier terms/lower down payments than having to pull your own money out for your purchases.

Doing my first cash out refi. 3.875% 30yr lower fees.Question how long should underwriting take?

Although their purchases are usually lower, so yes, we should see an impact, but I think it will be more due to uncertainty and not actually being denied. 

I got a pretty good rate (much lower than typical HML).

You have negative cash flow (which is normal while House Hacking).To improve the deal you would need to have a lower purchase price and/or be able to increase rents.