I think it is different if you live there, speak the language, know the market.  

@John Lasheri agree with you, you'd be surprised at how many people listen to Grant Cardone though, and decide that they're going to go buy a 100 unit with 'OPM' as their first deal and quit their job.i think buying something of that size with a few partners is a perfectly good goal. 

Make sure they fit your communication style and prelease the units.

Ideally, I would like to buy a 2-4 unit, but I'm not closed off to a single family and renting out the rooms.Any advice would be greatly appreciated!

@Steve Meyers I’ve been running this with some success with a local cincinnati agent on 2+ units and nationally with a commercial broker for shopping centers.

Recognize buying rent ready units have very thin margins and most properties purchased off the mls will have negative cash flow.  

Ask how many units they manage and how much experience they have.

Quote from @Somesh Mukherjee: Hi all, I am looking to diversify & add a small apartment (3-4 units) to my portfolio.

-If you have a single family home with a guest unit, you are likely going to sell at a higher price to an end user.

A landlord policy can be a commercial policy or a personal lines policy.It's the same as asking if you should buy a single family rental or a 1 unit building.Focus on the coverages and disregard the name of the policy.