One of the most frequently asked questions real estate investors have is where to invest in real estate. That’s because it’s common knowledge that location can “make it or break it” for you when buying income property. This risk that comes with this kind of business investment is quite high due to the high costs of real estate. Therefore, you need to carefully explore the market to find out which are the best cities for real estate investment.
Determining the best place to invest in real estate would typically depend on the strategy you want to adopt, whether you want to invest in homes near you or out of state and so on and so forth. However, there are some areas which always sound like the perfect location to start making money in real estate. Such is one of the hottest cities in California- Long Beach. Are you curious to learn everything about Long Beach houses for sale? Do you want to know whether or not you should invest in Long Beach real estate this year? Then keep on reading!
Related: Long Beach Real Estate Investing
#1 Why Invest in Long Beach Houses for Sale?
Prior to exploring the Long Beach housing market and the performance of Long Beach houses for sale, it is important to learn a bit more about the city itself. As mentioned, Long Beach is one of the hottest cities in California. It is located in the southern part of the state and is the second biggest city in the LA metropolitan area.
The city presents a great opportunity for making money in real estate. This is due to the fact that the city has one of the busiest and largest ports in the world. As you can imagine, this means that there are many job opportunities in the area. Consequently, people are in need of long-term accommodation. Thus, the location is suitable for buying an income property and successfully renting it out.
What about short-term accommodation? Well, Long Beach is a coastal city which attracts numerous tourists throughout the year. Additionally, the area offers numerous cultural experiences, such as music venues, art galleries, parks and recreational activities, the famous Aquarium of the Pacific as well as the RMS Queen Mary. However, investing in Long Beach houses for sale and adopting a short-term rental strategy is not advisable. This is due to the fact that after a long debate on the topic, city officials just enacted new strict regulations on Airbnb investment properties. This prevents real estate investors from renting out a whole property to Airbnb guests. Luckily, the traditional rental strategy is still a great option for this bustling real estate market.
Related: Long Beach Real Estate: A More Affordable Option in California Real Estate
Now that we have some background information about the city of Long Beach, it is time to get some insightful information about the Long Beach housing market and a few key Long Beach real estate market predictions.
#2 The Long Beach Real Estate Market
Of course, when planning on investing money in real estate, you should check the market forecast. This way you will know whether or not you are actually putting money in one of the best cities for real estate investment or rather a non-prosperous area. Additionally, as a real estate investor, you will be able to adapt your business strategy according to the future trends of the market.
Related: Looking for Your Next Investment Property Location? How About the Long Beach Real Estate Market?
According to Trulia, Long Beach houses for sale have increased in price over the past year. The median home sales price increased by 11% and does not show any signs of slowing down. It is likely that this trend will be notable throughout Long Beach as well as other popular cities in the California housing market.
Zillow‘s Long Beach real estate market predictions reveal that along with prices, the property value will increase. After rising 3.6% over the last year, value is set to rise another 3.3%.
Here is data acquired through Mashvisor’s real estate investment calculator which will be useful when exploring Long Beach houses for sale.
- Median Property Price: $781,990
- Average Price Per Square Foot: $466
- Traditional Rental Income: $2,973
- Traditional Cash on Cash Return: 1%
Even though the city is one of the best places to invest in real estate, some of its areas are better than others for establishing a real estate business. That is why we will explore the best neighborhoods in Long Beach. In order to provide you with precise information, we will present you with Mashvisor’s data on Long Beach houses for sale. We will only reveal the best areas to invest in Long Beach houses for sale that are suitable for long-term rentals due to the aforementioned strict Airbnb regulations.
#3 Best Neighborhoods in Long Beach: Long-Term Rentals
Long Beach houses for sale can be successfully transformed into long-term rental properties if you know the right neighborhoods to get started in. So here are the top performing neighborhoods in Long Beach when it comes to owning long-term rentals:
Bixby Knolls
- Median Property Price: $999,037
- Traditional Rental Income: $4,925
- Traditional Cash on Cash Return: 2.3%
North West Long Beach
- Median Property Price: $611,005
- Traditional Rental Income: $2,958
- Traditional Cash on Cash Return: 1.7%
East Side
- Median Property Price: $1,129,772
- Traditional Rental Income: $5,044
- Traditional Cash on Cash Return: 1.7%
We can state that investing in Long Beach houses for sale is a great way to start investing in real estate or grow your real estate investing portfolio. It is also important to note that for a successful business in the field, you should carefully explore exactly where to invest in real estate. Mashvisor can help you by providing you the necessary data and all the information you need. For instance, all the data above has been acquired through Mashvisor’s real estate investment calculator. If you want to start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.