4 Units Or Less, 5 Units Or More? Which way would you go?

[Michael Hicks]

I have a piece of property with that has already been divided, utilities in place, and ready to build. I hope to start construction by mid May. The property is zoned R-3 which in my area allows for up to 6 units per lot. I am leaning toward building 4 6 unit buildings on the property. I know by building over 4 units it takes away future FHA buyers and moves me from residential to commercial in the eyes of the lender. What advantages/ disadvantages are there to building 4 or 6 units other than the obvious additional number of units, land cost per unit. I have not owned any rentals bigger than a duplex. Are there tax advantages to 4 vs 6, insurance costs 4 vs 6, and anything else you can think of. The buildings will be built ranch style, basically a duplex doubled or tripled/ mirrored to increase the number of units. Any suggestions are appreciated.