I do believe CA has a cap on how many transactions one can do without a license.

If they win the re-classification angle then you're nailed!

So just like when you are a hammer, everything looks like a nail, every wet basement needs their product. 

I think you just hit the nail on the head.  

You put a cap on it, so you don't end up offering $1 Million for a $240K property.

If you are selling, I'd find the buyer and build to suit rather than speculate.If you are holding long term, check with your lender as to financing options down the road, 2-4 units can go as single family refinanced properties, commercial will have less desirable terms.Taxes, depreciation will be greater simply due to cost, no real difference to the owner....but RE taxes may be much higher on multi than SFDs.Commercial insurance will be higher than landlord policies on a SFD.Before you "decide" I suggest you nail down the costs to build, finance, hold and manage in your market and select the best opportunity based on research......and an appraiser's opinion.

I encourage you to get advice from several (or one good one lol) to nail down the details as of today's underwriting guidelines..

Having my avatar back, I'm in a good mood this morning thanks to @Karen Margrave I'll be polite in saying, trying to act like a Realtor as suggested by the OP is probably going to get you nailed by your state RE Commission trying to use a form fee agreement in closing.

It makes the joint pull tight when you nail it.  

You also need to pay for nails, flashing, felt, drip edge, pooky, ridge caps, decking, vents fireplace flashing if any.