Is there value in building a portfolio of 2-4plexes?

[Eugenia K.]

I am actively on the market for 2-4plexes in my area, with the intent of 1031'ing several of these into an apartment building (or some other commercial property) someday. I'm wondering what advantages there are in acquiring a portfolio of these smaller MFH (aside from serving as a warm up to make the switch to commercial), and if there's a case to be made to never make the switch to something larger?

One clear advantage is the relatively cheaper financing and availability to owner occupy. I've also heard second-hand that rent control is usually imposed on larger landlords. However, I expect that managing several addresses will result in more tenant/property manager headache and lower economies of scale on expenses.