I raised this concern because I haven't encountered such a situation before, and I'm worried about potential issues with refinancing after the renovation

I just wanted future turnkey investors to know what they were in store for. 

That looked like it had great potential, since purchase prices were significantly lower.

@Seo Hui Han,You certainly can 1031 exchange from your current commercial into a multifamily; no technical issues there.To speak generally, multifamily properties tend to have more stable cash flow but lower income potentials than commercial.

There seems to be less risk involved, and more upside potential.  

But just be aware you will be sharing a space with someone and not being home all the time to monitor the house opens yourself up to potential risks and liabilities.Another option to get into real estate is to consider passive real estate investments.

Cold calling potential sellers needs to be quick and get straight to the point: your a local small business and you're looking to make an offer on the property, are they interested?

Quick close leveraging a 1st lien against OTHER real estate you on either a cash out refinance, or, if you have equity, you could potentially obtain a 2nd lien against cash flowing real estate usually capped to a max 75% CLTV (1st + 2nd liens can't exceed 75% LTV combined) (5-30 days)4.

The only potential hiccup is that you have not owned it long. 

The value he adds to you can increase substantially and save you a ton of headache.An experienced investment broker will aid you in all aspects that come with the deal like underwriting, valuation, potential, structuring the deal, etc.