It seems that having 5 units sends all the lenders into a frenzy as they prefer to loan on 4.

I'm doing this because then I can cashflow the renovation without having to take out reno loans, it takes a bit longer because projects get done as I have the money to do them but for me I prefer to be a bit more risk adverse and have less debt. 

I'm looking to start off in areas with lower costs coming in, preferably under $100k single families but definitely under $200k. 

You have the choice to use whatever management team you would like. 

I would prefer some a group of nice tenants getting some sort of government support.

The best market for YOU, is the market that fit's YOU; you're situation, your preferences, you're resources, your knowledge level, you're risk aversion and about 40 other personalized factors to you. 

Some lenders offer this option, while others might prefer to handle each property individually.It will come down to the lender’s criteria, such as combined value, rental income (if applicable), and your financial profile. 

I don't know about you but I prefer to buy/invest in a market that has strong demand when it comes to my future profitability.

These sellers can be more critical of everything you do i.e. the property description posted, choice of images to upload, frequency and time of open houses, negotiations etc. 2.

If it does, then to me the answer is absolutely clear - take that money out and add more property.You will thank yourself a million times over when you see what that choice becomes in another 10 years. btw: I would add that I am very skeptical of anything in florida these days.