Which are the best places to buy an investment property? This question presents one of the main dilemmas real estate investors face in their careers. As you can imagine, however, finding the best places to buy an investment property is quite a complicated task. You need to think of various factors. For instance, you have to decide in which country or state you want to invest. Additionally, you need to consider the city as well as the neighborhood. Moreover, you need to keep in mind that the best places to buy an investment property vary depending on your rental strategy, for example. To explore this topic further, make sure to check out “These Are the Features of the Best Place to Invest in Real Estate.”
The California real estate market is a well-known and very desired investment location for many investors. Have you also considered investing in California real estate? You have, but you are still wondering where the best place to buy a house in California is? How about the Long Beach real estate market? In this blog, you will find all the needed information about investing in Long Beach property. We will go over the Long Beach real estate market. Further, we will explore real estate investing in Long Beach for each rental strategy. This will help you in understanding Long Beach real estate in-depth. Does Long Beach real estate interest you? Keep on reading!
#1 The California Real Estate Market
Prior to exploring Long Beach real estate, we should take a look at the general picture of the housing market in the state. Even though Long Beach real estate functions as a separate unit, the current California real estate situation certainly influences the city’s local market. In the present moment, the market in California is represented by a huge demand of property buyers and not as many property sellers. As you can imagine, this state of a seller’s market pushes the property prices to increase.
However, there are some interesting developments in the market that might have a significant impact on the way it functions. There are reforms regarding tax bills mainly. If such reforms pass, a big number of the interested buyers might prefer to invest in a property somewhere else. This is simply because the taxes in the state are quite high already. Thus, by making them even higher, it will get harder to generate positive cash flow even if you have found the best place to buy a house in California. To learn more about this matter, make sure to check out “California is Emerging as the Best Place to Invest in Real Estate in the Years to Come.”
Speaking of the best place to buy a house in California, it is time to take a look at the Long Beach real estate market.
#2 The Long Beach Real Estate Market
Long Beach is a city in Southern California. It is situated on the Pacific Coast of the United States and is the second busiest port in the country. Long Beach real estate is attractive to many investors who wish to make money in real estate. Sure enough, there is a reason behind the success of Long Beach real estate investors. The Long Beach real estate market indicates an increase in property sales as well as a rise in the median property prices over the last year. At the moment this trend seems to be continuing in the same direction.
Additionally, the city is a great opportunity for each type of rental strategy. Therefore, Long Beach real estate investors can pursue the real estate investing strategy they desire in one of the best places to buy a house in California. In order to get a clearer picture of what real estate investing in Long Beach looks like, let’s review the two types of residential Long Beach investment properties.
#3 Airbnb Long Beach
Airbnb Long Beach attracts many tourists yearly. There are a couple of things explaining this phenomenon. First of all, the climate in the city is associated with hot summers and mild winters. This favors the short-term rentals as there is no seasonality based on the weather features. Additionally, the city offers various leisure activities and tourists attractions which are worth traveling for. For example, there are aquariums, amusement as well as theme parks. In addition, the floating hotel presents an interest to travelers. The annual Catalina Water Ski Race is one of the events which brings many athletes and fans to the city. As you can imagine, all of the people visiting Long Beach need a place to stay. Hence, to buy an investment property in Long Beach and rent it out short-term is a great investment strategy. Here are some statistics for Airbnb Long Beach.
Median Property Price: $ 693,228
Airbnb Rental Income: $ 1,794
Airbnb Occupancy Rate: 53.27%
Airbnb Cash on Cash Return: 1.12%
Airbnb Cap Rate: 1.12%
Before you buy an investment property in Long Beach to make it an Airbnb rental, make sure to check the local rules and regulations. Keep in mind that Long Beach real estate investors need a business license in order to operate as Airbnb hosts. Furthermore, there are specific requirements for the Long Beach investment properties when rented out short-term. Be sure to be consistent with the legal requirements if you want to prosper in your Long Beach real estate investing business.
#4 Traditional Long Beach Real Estate Rentals
Despite the fact that, typically, Airbnb rentals generate higher rental income per night, when it comes to Long Beach real estate, traditional rentals prove to be the better rental strategy. Real estate investing in Long Beach traditional rentals is so successful for many reasons, but one major reason stands out. This is, namely, the large port in the city. This industry offers numerous job opportunities. Therefore, people in the city are in need of long-term accommodation. That is the main reason why you should buy an investment property in Long Beach and list it as a long-term rental as it is such a great investment opportunity. Here are some statistics regarding Long Beach investment properties in the traditional rental market.
Median Property Price: $ 693,228
Traditional Rental Income: $ 3,237
Traditional Cash on Cash Return: 1.62%
Traditional Cap Rate: 1.62%
It is important to note that all the presented data concerning investing in Long Beach property has been presented by Mashvisor’s investment property calculator. This real estate tool is a great helper not only when investing in Long Beach property, but in any property, anywhere. If you wish to learn more about this tool, make sure to read “Investment Property Calculator for Analyzing Real Estate Investments.” To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.