4 fourplexes or a 16 unit complex? Advantages/disadvantages?

[Jack Zhuang]

Hi everyone, my name is Jack and this is my first posting to bp forum! I've been actively browsing the forum and today I pulled the trigger and upgraded to pro. Anyways, here is my question, if I want can pull together 500K from refinancing on my current rental property and want to invest out of state, what are the pros and cons investing in multiple fourplexes (residential family) vs. a larger apartment complex (commercial)? I understand the economy of scale favors the larger units, but is more units always the better?  Assuming both properties are in the same area which has the same cap rate of course.

I've also found that there are far less larger complexes listing on LoopNet comparing to fourplexes. Does it mean it's harder to find great deals for larger complexes? I've heard people saying it is often buyer's market for larger complex because of higher barrel to entry comparing to residential properties, is that true? Thanks!

- Jack