As far as the 32 unit building, you have to assess the neighborhood and the volatility of values in that market.  

Currently I do B/C neighborhoods and I'm looking to move towards A/B for the reasons you listed: quality tenant base, less maintenance costs, and less volatility (hopefully) in management.

Finally, because most REITs are publicly traded, they have traditionally experienced substantial volatility along with the stock market.

: Make a Fortune In Today’s Volatile Real Estate Market, By Greg Rand)

It's the 650 that has MOST stuff paid on time and some stuff they always forget to pay that are the most volatile in my experience. 

Something to consider is how do you feel about risk and volatility.

Certainly over the last year the Ringgit has fallen from a roughly stable RM3.1 to over RM4.1 per USD last week, or about a 33% haircut, and counting.Long term, both oil and interest rates have never shown anything but volatility.

Say, $200 million or $300 million every year for the next three or four years as opposed to one large one because one large tax increase can create political volatility,” Fabian said.

I have been quite uncomfortable with the volatility of the stock market and really will be happy with even a small return.

Right now I invest in ETFs, but I'm not too keen on the emotional volatility of the stock market for investment purposes.