I know that anything over 4 units will belong to a commercial loan category, which changes amortization to less years, increases the mortgage payment and etc.

But if someone is trying to increase their equity quicker, then maybe a shorter loan is going to be better...and this carries over to what assets people want to buy. 

I'm wondering if you all could give me some pro's and cons:I'm wondering if it's a good idea to asking for a rent increase as part of my purchase contract with a tenant who is month to month and the seller has a management company taking care of property.My thinking is, if I were the seller and they asked this of me instead of asking for a lower purchase price I wouldn't mind.

Insurance is about $70, and there are no property taxes for a property under 75k in Louisiana, property management of $65.Rent increases about $30-$50 a year.I'm looking to cash flow about $215.

I really admire your strategy - I'm about to put a bid on a rehab in an estate and I think I'm going to increase the earnest money dramatically and drop the contingency. 

This should be a very common policy down there and shouldn't raise your premiums much, if at all.If he is sharing the profits with you it could be a great way to boost revenue, you just need to be aware of your increased liability. 

A 4-plex (strictly for investment) really caught my attention and according to rentometer, I can increase the rents by $275,  per per unit.

Alternately you could send them all a notice explaining the situation and indicating that if there is another fine that you are simply increasing all rents to cover the potential costs. 

Thanks @Carolyn Morales, I've looked into the 203k loan and it looks closer to something I might be interested in.

but your taxes and HOA will increase as well. in a downturn you go negative.