We specialize in small multifamily and understand the unique buyer pool for 5-unit buildings in Texas.
Why 5 units is a special case
Buyers generally can't use conventional residential mortgages for five or more units, so they rely on commercial or portfolio loans, larger down payments, cash, or seller financing. That narrows the buyer pool compared with a fourplex.
Because every unit is 20% of income, a single vacancy or a below-market lease has an outsized impact on value — so accurate rents and a clear picture of any vacant units matter.
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
- Each unit's rent and lease
- Any vacant or offline units
- Utility metering
- Roof and system condition
- Possibility of adding units or income
- Taxes and insurance
Private sale vs. listing
Private (off-market) sale
No public marketing, fewer showings, tenants undisturbed, flexible timing and terms. Less buyer exposure.
Broker listing
Wider exposure to buyers and competitive offers. Public marketing, more showings, commissions and a longer process.
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
What Happens Next?
- 01
Tell us about your property
- 02
We review the information
- 03
We discuss your goals
- 04
We explore potential options
- 05
You decide whether to move forward
Frequently asked questions
Your information is confidential. We will not publicly market your property without your permission.
Ready to explore your options?
Tell us about the property. It takes about 5 minutes, and there's no obligation to sell.
- Confidential
- No obligation
- Free property review
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?