Owning an apartment building in Los Angeles can be a valuable long-term investment, but there may come a time when you begin asking an important question: Should I sell my Los Angeles apartment building now, or would I be better off waiting until 2027?
There is no single answer that applies to every property owner. The right decision depends on your building's current value, rental income, operating expenses, condition, financing, tax considerations, and your personal investment goals.
Before deciding whether to sell or hold, it helps to understand the factors that can influence both the value of your apartment building and the strength of your position as a seller.
What Determines the Value of a Los Angeles Apartment Building?
Apartment buildings are valued differently from typical single-family homes. While comparable sales are important, experienced multifamily buyers also pay close attention to the property's income and operating performance.
Some of the most important factors include:
- Current rental income and rent roll
- Operating expenses
- Net operating income (NOI)
- Cap rate
- Gross rent multiplier (GRM)
- Number of units and unit mix
- Property condition and deferred maintenance
- Parking and other property amenities
- Location and neighborhood
- Recent sales of comparable apartment buildings
- Potential for future income growth
Two apartment buildings with a similar number of units can have significantly different values because of differences in income, expenses, condition, location, and future potential.
Reasons an Owner May Consider Selling in 2026
For some Los Angeles apartment-building owners, selling in 2026 may make sense. An owner may want to take equity out of the property, simplify an investment portfolio, retire from active property ownership, exchange into another investment, or simply move on from the responsibilities of managing an apartment building.
Other owners may discover that their property has appreciated substantially over the years and want to understand what today's market might offer before deciding whether to continue holding.
The important point is that you don't necessarily have to decide to sell before finding out what your building may be worth.
When Might Waiting Until 2027 Make Sense?
Waiting may be appropriate when the property continues to meet your investment objectives and you are comfortable with its income, expenses, financing, and management responsibilities.
An owner may also choose to hold if there are opportunities to improve the property's financial performance or if selling today would not accomplish the owner's longer-term financial or investment goals.
However, waiting solely because you assume the property will automatically be worth more next year can be risky. Real estate values can be affected by interest rates, financing conditions, investor demand, operating costs, rents, insurance expenses, regulations, and the overall economy.
Should I Make Improvements Before Selling My Apartment Building?
Not every apartment building needs extensive improvements before going on the market. In many cases, investors are more interested in the property's income, location, unit mix, condition, and future potential than cosmetic upgrades.
Before spending substantial money on improvements, it can be helpful to determine which repairs or changes are likely to improve marketability or value and which may provide little return when the property is sold.
How Can I Know What My Apartment Building Is Worth Before I Decide?
This is often the best place to start.
A property analysis can help you understand how your building compares with recent multifamily sales and how factors such as income, expenses, NOI, cap rate, GRM, unit mix, condition, and location may affect its potential market value.
If you own a multifamily property in Los Angeles, you can request a confidential apartment building property analysis here. There is no obligation to sell.
Selling an Apartment Building Is Different From Selling a House
Marketing an income-producing property requires a different approach from selling a typical residence. Potential buyers may include individual investors, experienced multifamily owners, partnerships, and other real estate investors who evaluate the property based heavily on its financial performance and investment potential.
Preparing accurate property information and positioning the building properly can make an important difference in how investors evaluate the opportunity.
Thinking About Selling Your Los Angeles Apartment Building?
If you're considering selling in 2026, waiting until 2027, or simply trying to understand your options, the first step does not have to be putting your property on the market.
It can simply be finding out what your apartment building may be worth and discussing the advantages and disadvantages of selling based on your particular situation.
I'm Shawn Pourebrahim, a Los Angeles real estate professional with more than 20 years of experience, including extensive experience with multifamily and income-producing properties.
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