Recommendation for contractors for residential multifamily

I'm debating between the following,

1. because I'm going to get a construction loan which will be disbursed in phases, should I rent out each unit as and when it is completed? Are there any liabilities I should be aware of?
   
2. I have received advise in some meetups that if it is > 4 units, it is better to get a commercial loan than residential loan. But can't remember why one is better than the other. Any thoughts?
3. Does anyone have a checklist they can share on number of reports/permits I would need to get at different stages of construction?