Investing in multifamily properties the right way

[Remone R.]

So me and my fiancee' purchased a fourplex back in february for about 500,000 as owner occupied. Since purchasing we've completed a number things maintenance etc. including raising rents--Unit 1 $1300 Unit 2 $1300 Unit 3 1100...The plan is to wait another 5 to 6 months and then do a cash out refinance and take that money to purchase another property. Dilemma~ If lenders designate 1 to 4 units as residential and residential properties mainly gain value according to comps and capital improvements, should i not focus on raising rents and decreasing expenses and focus on capital improvements i.e. painting, roofing etc? My plan with this property was to raise rents to market rate and install submeters to have tenants pay for utilities all in all to increase NOI. BUT I've read that increasing NOI in a residential '1 to 4 unit' property doesn't increase equity as it does in a commercial '5 + unit' property. So I'm confused as to what i should do. Its more cost efficient and easier for me to raise rents and install submeters, but if its not going to help why bother. right?

Again my goal is to purchase another 4 unit, but preferably 5 + unit and increase NOI to build equity then refinance and repeat the process. 50 units in 5 years..im determined