Selling · 4-unit
Selling a 4-Unit Apartment Building in Los Angeles
4-unit apartment buildings are the sweet spot of LA multifamily — they qualify for residential (1–4 unit) financing, which dramatically expands the buyer pool to include owner-occupants alongside investors. That deeper demand pool typically compresses cap rates versus 5+ unit product on the same block.
Buyer profile
4-unit LA buyers split into two pools. First: owner-occupant buyers who plan to live in one unit and rent the other three, accessing 5–15% down FHA or conventional loans at residential rates. Second: private investors who like the small-check size and simple management. Both pools pay premium pricing because the residential-loan option gives them cheaper capital than any 5+ unit buyer can access.
Financing patterns
Residential financing (Fannie/Freddie 1–4 unit conforming or jumbo) is the game-changer. Owner-occupants qualify for the lowest rates and highest LTVs in the market — often 90%+ LTV. Investors can use residential DSCR loans up to 75–80% LTV. This is why 4-units trade at meaningfully lower cap rates than the 5–10 unit product across the street.
Typical timeline
60–90 days is typical from listing to close. Marketing runs 21–30 days; escrow 30–45 days. Owner-occupant buyers can close slightly slower due to residential-loan underwriting requirements. On-market 4-unit deals frequently receive multiple offers in LA's core submarkets.
Related