When financing is less attractive for buyers, there is relatively less added value for that fifth unit. - in most areas.. San Francisco seems to be an exception to that generalization.
You could ask your agent in San Francisco to do a more specific analysis than my analysis on SFAR of 100 sold 4 plexes in the past year gave a median of $1,350,000 and an average of $1,411,681 or $337,500 to $352,920 per door. 22 five plexes reported sold on SFAR in the past year averaged $1,677,773 with a median of $1,600,000 or $320,000 per door to $335,555 per door.
A quick survey of the Sacramento MLS shows an average sale price in the past 18 months of 84 four- plexes at $523,000 ($140,750 per door)
The average for five plexes was 601,500 ($120,100 per door)
Another way of looking at it is that the fifth units added an average of only $78,500 to the value of their respective properties in my metro area.
advice? financing is a consideration for prospective investor-buyers; a seller could maybe sometimes benefit by offering some seller financing?
I have a client who will be looking for a multi-unit building (4-6 units), most likely in the Spring to coincide with a 1031. I would concur with Jed that you'd want to use a San Francisco agent due to our wonderfully wacky rent control constraints and because we have a very specific pool of buyers interested in the City. No one can really time a market, I certainly saw a lot of 1031 monies needing a place to land even during the holiday season. Let us all know when it comes up on the market!
I would recommend Mike Marek. He cna be reached at (415) 846-4232 or by e-mail at Mike.Marek@STAR_SF.com
He knows that market and is an investor himself so he can walk you through the entire transcaction and also provide advise on an uplink if you would like.
He would also be able to recommend some one to power wash the building.
An agent that I would recommend is Larry Mueller. He is a nationally recognized agent specializing in multi-unit property sales. 650.356.3716.