@David Cozzi the biggest difference with larger multi family units is the type of financing available and the operating expenses.

Thanks You have two choices. 

Generally speaking you never should sell unless you will 1031 Exchange it for a larger multifamily in the midwest or the South for cashflow.

Again, not illegal, but a choice that is made by the end buyers lender which then makes it more difficult for the wholesaler unless you fund the deal yourself or utilize transactional lending.  

But sharing rooms will be a choice, if they choose to bring a friend to lower the cost then they can as long as the roommate can still pass the screening and tenant requirements.

Now you don't need the larger amount down, but you need some more closing costs.All gov't back loans (other than VA where the whole loan is guaranteed) the MI doesn't come off. 

When the photographer is finished they will send you their choice pics and then your realtor will also put eyes on it.

Or is it an attempt to protect IRA owners from themselves by preventing them from taking larger "risks" on private equity?

There's also partnering with others on larger deals

Just look for larger properties with fewer bedrooms.