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5 Multifamily Properties Under $5 Million in 5 Top US Markets

Here’s a Snapshot of What’s Currently on the Market
The College Apartments property at 4550-4554 E. Sierra Madre Ave., in Fresno, California, is listed for $4,995,000.
The College Apartments property at 4550-4554 E. Sierra Madre Ave., in Fresno, California, is listed for $4,995,000.

Multifamily demand has started to cool off across the country as waves of new supply hit the market, but many cities are still boasting double-digit rent growth and high return potential for investors.

LoopNet recently released its list of the Top 10 U.S. Markets To Buy a Multifamily Property for Less Than $20M , showcasing often affordable markets that had high demand from renters, low vacancy rates and high rent growth. These markets also featured minimal new construction, meaning existing properties make up the backbone of the market.

If the list made you curious, you might be asking what an interested investor can buy in those markets today. To get an idea, LoopNet looked at what’s currently on the market for less than $5 million in each of the top five markets on the list — Fresno, California; Dallas-Fort Worth; Salt Lake City; Madison, Wisconsin and Cincinnati.

From a 40-unit property in Fresno with high demand from students and the potential to raise rent through value-add upgrades, to a $1.5 million, fully renovated building in Cincinnati touting a 6.5% capitalization rate , these properties asking under $5 million today exemplify the very reasons these five markets stand out with ample opportunities for the entrepreneurial investor to build out their portfolio.

$4,995,000 — Fresno, California

College Apartments, 4550-4554 E. Sierra Madre Ave.


Fresno continues to stand out as an investment market for its high rent growth and extremely low vacancy, as it was a destination for California residents looking for respite from the high rents of coastal cities during the pandemic. Fresno’s demand will hold for this 40-unit property. Just one block from a California State University campus, the apartment complex sits amid a 22,710-student body, only 1,200 of whom live on campus.

Most units are one bedrooms measuring around 650 square feet, renting for around $1,000 per month, which is below market for the city (at $1,325), plus four two-bedroom units.

“Several units have been upgraded and have demonstrated market acceptance at higher rental rates,” said Robin Kane, listing broker with The Mogharebi Group, which is handling the sale of the property.


Kane added that there is still room for a value-add investor to raise rents by upgrading the remaining units and common space. Based on year-to-date figures, the property has a net operating income of almost $265,000 and a cap rate of 5.3%.

The sale is offered with an existing $2,681,000 assumable loan with a 30-year term and an adjustable 4.0% interest rate, which Kane noted is below today’s current mortgage rates.

$4,500,000 — Dallas

Ross and Matilda, 5609 Ross Ave.


Dallas is one market on the list that has many new, luxury units in the pipeline. This implies there will be demand from renters looking for affordable units commanding below-market rents, as new construction drives up rents across the city. The 1950s-built Ross and Matilda is a 32-unit property spread across three buildings, with studio and one-bedroom units. It recently underwent a $1.3 million renovation, that included outfitting all units with hardwood floors, stainless steel appliances and granite countertops. The property also has a landscaped outdoor courtyard and gated parking for residents.

The complex is 100% leased, with new leases and renewals averaging a $120 monthly rent increase, noted Edge Realty Partners, the firm handling the property sale. The lively Lower Greenville neighborhood, which is bustling with nightlife, is not only attractive to renters now, but will set property owners up for long term growth potential, said Wilson Stafford, listing broker with Edge Realty Partners.


"Lower Greenville has a very high barrier to entry for future multifamily development. As a result, the property creates a great opportunity for an investor to achieve attractive yields through current and future rent growth," said Stafford. "Additionally, there is potential to further enhance returns with multiple exit strategies when taking into account the property’s underlying zoning, increasing area rents and rapidly appreciating land values."

$4,250,000 — Salt Lake City

Majestic Apartments and C Street Apartments, Two-building Portfolio


Ten minutes from downtown Salt Lake City, this listing offers a chance to buy two buildings (the 12-unit Majestic Apartments and the 5-unit C Street Apartments) as a portfolio with 17 total units. The buildings present a value-add opportunity for investors looking for rental upside.

“The current in-place rents are 50% of market [at $806], providing investors tremendous upside and value-add opportunity,” said Michael King, listing broker with Cushman & Wakefield. According to the firm, a buyer could “expand the portfolio’s cap rate well above 5.5% [from 2.2% currently] by spending $35,000 per unit in cosmetic upgrades.” The net operating income based on the last twelve months is $93,514, though the brokerage forecasts that with upgrades that number would be $258,874.

In a market that’s seeing an uptick in multifamily construction activity, the brick and ivy-clad Majestic offers a boutique choice for renters on the city's desirable South Temple Street. Both properties are in historic preservation districts in the city, which the brokerage noted can protect owners of historic apartments from competition as new development is limited in the neighborhood.

“The ability to acquire an asset on South Temple with all of these characteristics is an extremely rare commodity in our market, making this one of the most attractive value-add investments in the Utah market,” King said.

$1,400,000 — Madison, Wisconsin

5726 Russett Road


For investors looking for immediate cash flow, this 8-unit apartment building, including four three-bedroom and four two-bedroom units, is 100% occupied by long-term tenants, though one month-to-month lease could allow the owner to re-lease a unit. The units have been updated, most with wood or tile flooring, new windows and kitchen appliances and they all feature outdoor balconies. The building also has a new steel roof and resurfaced parking lot.

This property could be part of a 1031 exchange , meaning the seller has 45 days to find a new “like-kind” property in which to reinvest the sales funds, and the buyer must agree to a flexible closing process. The building has a recent gross rental income of $109,992 and a cap rate of 6.12%.


Three of the leases are up for renewal in the first quarter of 2023, but Madison boasts high rental demand as the fastest-growing city in Wisconsin, and is an affordable market for renters with average prices below the national average.

$1,550,000 — Cincinnati

Robertson Avenue Apartments, 2771 Robertson Ave.

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A 10-minute drive from downtown Cincinnati, this 13-unit apartment building presents an affordable opportunity in a neighborhood poised for growth.

Bringing in average monthly rent per unit of $980 for the 12, one-bedroom units and $1,700 for the three-bedroom, the property has a net operating income of $101,310. All units have been remodeled in the past year with new appliances, flooring and finishes, but the brokerage noted that the building still has value-add potential that could increase rents.


The Robertson apartment building sits on a tree-lined street but is adjacent to two, $100 million-plus mixed-use and residential development projects soon to break ground, signaling the property’s growth potential in the years to come. With a cap rate of 6.5%, the $1.5 million property speaks to Cincinnati’s claim as an entry-level market that’s accessible for first-time or independent investors, as the city offers affordable properties with high returns.