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.

It makes the joint pull tight when you nail it.  

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.

I didn't know how to hang a picture on the wall with a hammer and a nail.

The expenses you have seem conservative at about 60% of gross rent so NOI of about $3300/month or about $40k a year. 10 cap on the purchase price, about a 9 cap if the $50k in rehab turns out to be a good number.The gas explosion sounds bad but I don't think it would hurt your ability to rent them.

You hit the nail on the head - I would never put all of my eggs in one basket with the hope of appreciation.

Chris hit the nail on the head.

The past owners, or agents nail either sheetrock or wooden boards to cover up the wall.

You've hit the nail on the head.