Let me make sure I understand you correctly. 

I remember reading that one of the units could be commercial space as long as it is less than 50% of the building, but I cannot find any info about this on the cmhc site.Am I remembering this correctly?

Correction: that should be valuable not available in "my understanding is that the more valuable... 

However if you're positive this area is doing well and it doesn't have:Population decline or stagnationCompanies leaving the area with none taking its placeDeclining average incomeRising average age of populationRising tax delinquencies or foreclosures I would only take the leap if you understand these and there are still risks such as the aging property which might have a lot of deferred CapEx work which will eat up profits if not forecasted and budgeted correctly. 

If you're looking to manage your own homes and perhaps start a property management company, it's a great idea to get a job at one in your area, as you'll gain a lot of useful knowledge and can ensure that you handle future situations legally, correctly, and efficiently.

Tear down a possibility or slap some paint on it and be doneSo many different possible goals so many different ‘correct’ areas to invest in

It does add to costs but I have discovered properties that look a mess - and the property manager is shocked when I say I was at the house at 123 Main Street today, and saw that X, Y and Z are totally unacceptable - correct this immediately.

Alright, here is my understanding of the situation.ARV = 3.5M (Let's be conservative)Development cost = 2M Value of the land as it is today (If I got it correctly) = 1.5M of which you will own 40% if you pay 620k for it. 

Make sure transfer information is correct and not at last minute changed to different instructions.http://www.chicagotribune.com/classified/realestat...What city did you settle on? 

If you do that, I think you will do just fine and find the right CRE path for yourself.