Financing for MF 5+ units vs 1-4 SFH

[Brianne H.]

Hello BP! As a quick background, I am from Canada and currently in the process of developing and renovating our recently purchased primary residence, which we will then refinance and should have a decent chunk of money to invest. I'm interested in investing in the US market where our money can go further, as the local economy has been floundering, but the average SFH price is still about $500k. I am still researching different US markets, but I'm leaning toward Ohio, though considering Georgia, Indiana, and other states. My original plan was also to focus on 2-4 unit properties, as I've heard it's easier to finance those.

Then I realized I'm probably not seeing the bigger picture because I locked onto "easier to finance" 2-4 residential units. Just because it may be easier now doesn't actually mean better long-term, and I want to scale up fairly quickly. 

I still have a lot to learn, but what are the biggest pros and cons for investing in SFH 2-4 units and MF 5+ units?

How does the financing differ on each? 

Are there any additional tax or other considerations with one or the other being that I'm not American and don't reside in the US? 

Can you 1031 either type of property? (And as a Canadian does that apply to me?) 

Thank you! 

[Todd Dexheimer]

It's harder to finance deals under $1M loan price and much easier as they get bigger. A 5 unit may be harder than a 4 unit to finance, but a 100 unit will be much easier than both.