Preparing to Buy or Sell Your First Multifamily Property

Sam Gutierrez
Sam Gutierrez

By: Samuel Gutierrez, Associate

In the fourth quarter of 2023, the Chicago Multifamily market continues to be a competitive space. For a new investor, navigating the multifamily market demands an approach grounded in knowledge and foresight. In this guide, we identify the essential steps to prepare you for a successful transaction.

For Buyers

1. Financial Preparation

Before purchasing your first investment property, ensure your financial house is in order. This includes creating a clear budget, understanding your financing options, and being prepared for the associated costs that come with purchasing and operating a multifamily building.

2. Market Research

Do a deep dive into the market. Understand the macroeconomic factors, neighborhood demographics, and growth prospects that can influence the value and ROI of your potential investment. Understanding the average rents, recent sales prices, and market cap rates associated with the submarket will give you a competitive advantage.

3. Assembling a Skilled Team

Real estate transactions require multiple parties working toward a common goal.  Surround yourself with a team of experienced professionals including a real estate broker, attorney, lender, inspector and accountant to guide you through the process.

4. Property Analysis

Once you identify potential properties, undertake a comprehensive analysis. Assess the physical condition, occupancy, and financial performance of the building to gauge its viability. Understand any operational inefficiencies or under-market rents that may be able to be improved upon.

For Sellers

1. Property Enhancement

Before listing your property, consider improvements that can enhance its value. This could range from cosmetic upgrades in units to addressing maintenance issues that would be uncovered during a diligence period. Understand that buyers will conduct an inspection to determine the condition of building systems such as the roof, HVAC, water heaters, and masonry.

2. Financial Records

Ensure your financial records are organized and up-to-date. Prospective buyers will delve deep into the financial health of the property. Items such as a current rent roll and income and expense statements should be in order prior to marketing your property for sale. These financials will be the basis for the value of the property.

3. Market Positioning

Work with your real estate broker to position your property optimally in the market. This involves setting a competitive yet realistic price and crafting a marketing strategy that highlights the unique selling points and potential upside of your property.

4. Preparing for Due Diligence

Be prepared for the due diligence process where buyers will examine every aspect of the property. Having all necessary documents organized and readily available can facilitate a smoother transaction. Leases, subsidy contracts, and service agreements will likely need to be presented as part of any sale.


Whether buying or selling your first multifamily building, preparation is key. Understanding the sales process before embarking on your own journey will help guarantee the best possible results.

Our team at Interra is always happy to consult you wherever you may be in your process. Utilizing our brokerage service will result in the smoothest process and best results in your next multifamily transaction.

Samuel Gutierrez

See Samuel’s active listings here.



Phone: (O) 312.724.7015 & (C) 815.258.9262

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