6-12 unit apartment complex building

New York, New York
General Real Estate Investing
2moFollow

6-12 unit apartment complex building

Sunny Verma
Member since 2023 · 8 posts · 8 votes

hello group,

I am back again seeking new direction and guidance.

Through the help of this forum, I currently own 3 single family homes out of the state and i currently live in NY tristate area. 

I am interested in pursuing turn key 6-12 unit apartment complex building.  Open to locations.

Ideal preference:

6-12 units turn key

Budget $1 million

Minimum property built year 1965 +/- 5 years 

I would like to connect with people that went to similar investor path and slowing growing their portfolio. 

Any good/bad/ugly?

thanks

4Reply
169 views

Most Popular Reply

Ecaterina Katerina Morosan
Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
2mo

I see our investors from NYC successfully buying similar buildings in Connecticut

1Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Joseph CacciapagliaBusiness Member
    Lender · San Antonio, TX · Member since 2020 · 1k+ posts · 1k+ votes
    2mo

    If your total budget is $1MM, you might want to stick with 9 or fewer units, unless you have local banking relationships who are telling you something different. When you get to about $2MM for small multifamily, there are a lot of financing options, but when you're lower than that, there aren't a ton of options.

    [email protected]979-218-2286
    Joseph Cacciapaglia powered by Morty
    WebsiteView Page
    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Sunny Verma:

    hello group,

    I am back again seeking new direction and guidance.

    Through the help of this forum, I currently own 3 single family homes out of the state and i currently live in NY tristate area. 

    I am interested in pursuing turn key 6-12 unit apartment complex building.  Open to locations.

    Ideal preference:

    6-12 units turn key

    Budget $1 million

    Minimum property built year 1965 +/- 5 years 

    I would like to connect with people that went to similar investor path and slowing growing their portfolio. 

    Any good/bad/ugly?

    thanks

    @Sunny Verma
    Sounds like a natural next step after building a portfolio of single-family rentals. One thing I'd pay close attention to is the property's actual operating performance rather than just the unit count. Reviewing the rent roll, trailing expenses, deferred maintenance, and local rental demand can make a big difference when comparing turnkey opportunities. Wishing you the best on the search!

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    0Reply
  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 913 votes
    2mo
    Quote from @Sunny Verma:

    hello group,

    I am back again seeking new direction and guidance.

    Through the help of this forum, I currently own 3 single family homes out of the state and i currently live in NY tristate area. 

    I am interested in pursuing turn key 6-12 unit apartment complex building.  Open to locations.

    Ideal preference:

    6-12 units turn key

    Budget $1 million

    Minimum property built year 1965 +/- 5 years 

    I would like to connect with people that went to similar investor path and slowing growing their portfolio. 

    Any good/bad/ugly?

    thanks


    Congrats on building to three rentals, that's a great foundation. With a $1M budget, I'd focus less on finding a turnkey property anywhere and more on finding the right market and local team. The Midwest market is worth a look because there are still opportunities in that size range with solid cash flow and long-term upside. The biggest lesson from investors who scale successfully is to stay disciplined on the numbers and surround yourself with a great property manager, lender, and contractor before you close on the deal.
    [email protected]614-418-6081
    0Reply
  • Ecaterina Katerina Morosan
    Real Estate Agent · Miami, FL · Member since 2022 · 238 posts · 102 votes
    2mo

    I see our investors from NYC successfully buying similar buildings in Connecticut

    1Reply
  • Bogdan Constantin Stefanide
    Realtor · Norwalk, CT · Member since 2016 · 203 posts · 69 votes
    2mo

    Congrats on the 3 SFRs — solid base for this next step. A few things worth knowing before you start touring 6-12 unit buildings:

    Financing changes at 5+ units. You're out of conventional/FHA territory and into commercial lending — underwritten on the property's NOI and DSCR (usually 1.20-1.25x), not your personal income, with 20-25 year amortization and a 5-10 year balloon. Get pre-qualified with a commercial lender before you fall for a building; the number they'll lend can surprise people coming from residential.

    "Turnkey" at $1M for 6-12 units, built ~1965, is a tight box. That's roughly $85k-$165k/door depending on unit count. True turnkey (recently renovated, stabilized, low deferred maintenance) usually means someone already did the value-add work — you're paying for it, which is fine, just expect a lower cap rate than a value-add version of the same building.

    At ~60 years old, verify: original vs. replaced electrical service (aluminum branch wiring from that era gets flagged by insurers), boiler/heating type and age, and sewer line history. That's usually where "turnkey" claims don't hold up under a real inspection.

    On location — since you're in the NY tristate area, Connecticut's a market where your budget can land you in that 6-10 unit range within reasonable driving distance for self-management or oversight, depending on the county.

    Given you want to connect with others on this path, in person meetups are a good resource 

    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 593 posts · 445 votes
    1mo

    Good next step, but set expectations before you shop.

    "Turnkey" barely exists at 6-12 units. That's commercial, bought as-is between operators. The polished turnkey packages are almost all SFH. Plan to do your own diligence.

    Financing changes completely. 5+ units is commercial debt, DSCR or local bank paper, 20-30% down, shorter terms, often a balloon. On $1M plan for $250-300k in plus reserves. Good news, it qualifies on the building's income, not your DTI.

    At that price and vintage you're buying C-class in a secondary market. Fine, but older systems all aging together and a tenant base that needs real management. Not passive. You self-manage nothing from NY tristate, line up a real commercial PM before you buy.

    Underwrite off the T-12 and current rent roll, not the pro forma. What the building actually did, not what the seller says it could do.

    It's a new game, not a bigger SFH. Different debt, management, diligence. Doable, just go in knowing that.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free