Sterman Multifamily Group · Free Tool

Hold five more years or sell now?

Run the math on both paths. Net equity today versus net equity in year five. The number that actually picks.

After depreciation
3% default (LA long-term avg)
4% if RSO-capped, 5%+ if post-1995
Roughly 30–38% on a significant gain without a 1031

The math

Sell now (net after tax)

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Hold 5 years (net after tax)

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Cumulative 5-year cash flow (held)
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Assumes you hold and collect NOI, pre-tax. Does not deduct debt service (assumed covered within NOI) or capital expenses.
Year 5 projected building value
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Break-even appreciation
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Annual appreciation required for holding to match selling now.

The math picks a winner. Your life may have other variables. Active management capacity, next-use for capital, estate plan, and 1031 eligibility all move the answer. The calculator runs the baseline. The conversation runs the rest.

Michael Sterman, Senior Managing Director Investments at Marcus & Millichap. $1.41 billion across 254 closed transactions. Request an actual sell-versus-hold conversation on your building.

Simplified model. Assumes constant cap rate over 5 years, NOI growth compounds annually, selling costs of 6% at exit, and the tax rate you input. Does not model refinance scenarios, reserves, or vacancy changes. Verify with your CPA.