This is mainly because they want to put it into the commercial category.

If you do choose to sell, without knowing much more detail about you or your market, I'd suggest a 1031 exchage in to one or two other units that have numbers that work better for you. 

It's hard to find a home or an investment that is less than or close to $100 a square foot anywhere in the country so the more I write about this, the more I am taking myself into this...9 million visitors cannot be wrong.

My goal is to start with a quadplex, move into one unit and fix up the other three.

But want to jump into something larger. 

Alternatively, I can look into househacking in my neighborhood, but everything is kind of expensive here and I don't have any dilapidated homes to renovate.

I believe right now is an amazing time to get into real estate as there's deep concern and even fear in the marketplace which is just when you want to come in.

I'm looking at a flip in Denver and the issue I am running into is the seller is trying to find a way to occupy the property post close.

@Anthony DelVecchioTo house hack a property, rent it out after the first year, obtain another FHA loan if necessary, refinance the FHA loan into a conventional loan, use a conventional loan for subsequent properties, and repeat the process to acquire additional properties, diversify financing methods, consider different property types, leverage equity, and network with real estate professionals.Good luck!

Without getting into too much detail, the cost to build right now is astronomically high and this is putting upward pressure on the market.