How to Buy an Apartment Building (5–12 Units)

Most investors buy single-family rentals one door at a time — but small multifamily real estate plays by different rules, and the math can work in your favor. This video breaks down how to buy an apartment building in the 5–12 unit range using the exact numbers banks and experienced investors rely on. We cover: • How to calculate NOI (Net Operating Income) • Cap rate explained with a real deal example • How DSCR loans work and what lenders actually underwrite • Commercial real estate financing vs. residential loans • Cash-on-cash return on a restructured $700K deal • The real risks: balloon payments, vacancy, deferred maintenance This is real estate investing for beginners taught through actual deal math — no fluff, just formulas you can use on your next analysis. Small apartment buildings can outperform single-family rentals on a per-dollar basis because you're scaling income under one roof, one loan, and one set of operating costs. But the numbers have to work — NOI, DSCR, and cash-on-cash return are your decision framework, not optional metrics. See the resources below for deal analysis templates, financing guides, and related breakdowns. Subscribe for more multifamily real estate and commercial real estate financing breakdowns.