Seems the terms are better than a commercial at this stage (1st property) rather than putting it in my llc.

I will share that it is difficult to convert any SFH or duplex to a triplex as you go from IRC building code (1-2 family homes) to IBC building codes which are much more restrictive as it is for any commercial building which is any 3+ unit including 100-200 unit apartments so there is sound and fire ratings that have to be adhered to.Hope this helps.

A few months ago, I posted an article on a flip that was in the beginning stages in a historic district of downtown Tucson: https://www.biggerpockets.com/forums/311/topics/55....

It sounds to me like you have two conflicting goals.

A middle-aged man can make sound financial decisions, live a financially responsible life, and get hit with a catastrophe that crushes him.I just don't believe that the majority of bankruptcies fall into that category.

Anyway, that sounds like a great deal for something in WA! 

Yup, typically if its highest and best use is residential then residential financing isn't hard to obtain for a commercially zoned property.To the question of developing on the land, which sounds like it's on the same parcel as your building, that would depend on your cities planning and codes.

@Michael NewmanIt sounds like some strong ambitions!

It does not sound like there is consistant structural contact between truss and wall structure indicating they are not structural.

But if you are just offering advice (and from what you laid out, very sound advice), then the most prudent thing would likely be to step back and let them come to the realization that you are correct on their own terms.