Comparison of 2-4 units vs. 5 units +

[Brandon V.]

Although formally educated in real estate the "real world" is showing me something different. My question is why are 2-4 unit property prices evaluated and appraised mostly off of comps and 5 unit plus selling price is based more off of cap rate and gross income? Aren't we investing in cash flow and the numbers? I find that this is a barrier in breaking into real estate investing because income numbers should determine price of the property not comparable units.

Thanks for everyone's input in advance.

Brandon V.