Hi Terre, my guess would be that it could be one of a few things, Lenders dont know how to handle it from a conventional or FHA angle and the interest on a commerical loan may not make the numbers worth the risk. 

Any other low-risk options or should I stay on the track I'm going, pay as I go???

Any other low-risk options or should I stay on the track I'm going, pay as I go???

Depending on someone's personality and drive will determine their willingness to take on risks. 

I'm right there with you on starting with single family because as an investor it puts less pressure on you and you're not risking as much.

Only you can decide if you're willing to take on that kind of risk. $120k in unforeseen repairs, amortized over 30 years, wipes out your cashflow.

Lower financial risk if we had a longer vacancy or costly repairs because the rental expenses are lower. 

You could see if the seller would be willing to carry a 2nd mortgage for the 10% your missing.

Or perhaps you could get a commercial bank loan and have the seller carry 30%? 

LLC electing S-Corp status is usually beneficial when flipping houses, but be careful that your CPA helps you with the "reasonable compensation" aspect- as that would be the main audit risk.