Selling a 10-Unit Apartment Building

That's our core focus. We review 10-unit buildings across Texas and can often purchase directly or introduce qualified buyers privately.

How 10-unit buildings are typically valued

Buyers calculate net operating income — rent collected minus taxes, insurance, utilities, repairs, management and reserves — and apply a cap rate that reflects the location, condition and risk. They'll also look at price per unit compared with recent sales.

Many 10-unit buildings are self-managed. Buyers will usually add a professional management fee to expenses, even if you don't pay one today, which is worth anticipating.

How multifamily valuation works

Most buyers start with net operating income (NOI): rent and other income collected, minus operating costs such as taxes, insurance, utilities, repairs and management. They divide NOI by a capitalization rate that reflects the market and the property's risk. For example, $100,000 of NOI at a 7.5% cap rate suggests a value around $1.33 million. Recent comparable sales, condition and upside then refine the number.

What buyers look at

• Trailing 12-month income and expenses
• Rent roll vs market rents
• Management and staffing
• Capital needs in the next 5 years
• Utility structure
• Parking and amenities

Private sale vs. listing

Neither is right for everyone. We'll tell you honestly which we think fits your goals.

Common reasons owners sell

• • Retirement or wanting less day-to-day management
• • Partnership or family ownership changes
• • An inherited property
• • Deferred maintenance or rising costs
• • Freeing up capital for another investment

Frequently asked questions

Helpful guides

• How Much Is My 10-Unit Apartment Building Worth in Texas?
• How to Sell a Small Apartment Building Without Listing It
• What Documents Do I Need to Sell an Apartment Building?
• Should I Sell or Keep My Multifamily Property?