Decision factor - 4 units or 5 units on renovation

[Steve Fernandez]

I’m about to make an offer on a latge home with a large detached garage.  Meeting with an architect, and the question came up on the renovation. I have the ability to convert the property to either four or five units.  I will buy the property all cash, but will refinance after renovations completed and tenants in place.  I seem to remember reading somewhere on BP, that 4 units is the maximum for traditional mortgage financing.  At 5 units and above, it’s treated differently.  

Any guidance on this topic is greatly appreciated!

Steve