Not sure what $50k represents as a % of the overall purchase but I would take the whole amount as an option consideration.

According to Zillow, home values in Columbus have increased sharply since 2013, rising by 9.2% over the past year alone.

Conversely though, they're at increased risk for these types of bleeding.  

We are looking to start financing so we can increase our inventory and maximize buying power which leads into my question.

There's also another perk to owning your own home I didn't elaborate on: A 3% annual cap on property tax increases because of Save Our Homes.

Be considerate of your sellers absolutely as much as you can.

The existing quad is listed for sale at $1.1M and a 5.3% CAP.Commercial multifamily in the area sells at a CAP rate of roughly 4.5%.The existing property is zoned to allow for 6 units and has available land to build an addition duplex for ~$150 per sqft.Assume 1000 sqft duplex at $150,000 and we’ll build that into the loan.After expenses, the additional units will each increase the annual NOI by $14,400 = (Gross rent – operating expenses = $600x12x2).Purchase Price  $1.1MMConstruction:  $150KLoan amount: $1MMTotal for project:  $1.25MM20% down: $250KPre-construction NOI:   $58,300Post construction NOI:  $72,700What is the estimated property value after construction?

Long term wealth, increased month to month income, diversity? 

Find a house in decent shape and focus on the areas that will increase the value and appeal to people simultaneously. 

In some cases i have seen rental prices going up after floods as many units are not livable or need repairs so if you end up with a property that was not damaged, you might see some short term higher demand and price increase.