LONG BEACH AS AN INVESTMENT.
LONG BEACH FOR YOUR DREAM HOME.
Long Beach as an Investment
Why invest in residential income property in Long Beach (duplexes, triplexes, fourplexes, multiplexes, 5+ units, apartment buildings)?
Income Property, specifically in Long Beach, offers a high return on your investment, cash flow, cheaper prices than other beach communities and no rent control. Long Beach is also centrally located between Los Angeles and Orange County and attracts an abundance of renters because of its climate, ambiance and industry (or numerous employment opportunities).
Cheaper Prices, Immediate Cash Flow & Return on Investment
Why Long Beach over another beach city? The entire city of Long Beach was once viewed negatively because it housed the old Pike and was a naval port. An old, creepy amusement park, sailors on the loose, and sleezy booze joints caused many to believe Long Beach as a whole was a place to stay away from. So they did. For many years there was a large supply of property for sale but not much demand, so the prices didn't increase like those in other beach cities. Sadly, the entire city carried this negative stigma when, in reality, the rough element was really confined to the Downtown, lower Wrigley and Poly High area.
But in 1985 the City began a massive redevelopment of its Downtown. Out with the old Pike. Out with the sleezy booze joints and topless bars. Out with the sailors (the navy closed Long Beach as a port for their military). Now, 26 years later and billions of dollars in facelife and new construction, the Downtown is one of the most "happening" places along the beach. In came romantic restaurants, trendy clubs, nightlife, theater, conventions, a new Pike (totally unlike the old one), two marinas and more. Investors are only just figuring out there are huge profits to be made in purchasing Long Beach apartment buildings because everyone has now not only heard of Long Beach but is flocking here because of the draw of new Downtown along with the beach town flavor of Belmont Shore (with its famous Second Street), Naples, Belmont Heights, Belmont Park, Carroll Park, to name just a few.
Because investors are "only just" figuring this out, prices are still relatively low and many terrific deals (and some steals!) can be found here in some of the very best neighborhoods along the beach. This means a buyer needs a smaller down payment than he would otherwise need if he were purchasing in another beach city (lower price, lower down payment). Rental income is comparable to other beach cities so you pay less for a property and cash flow more.
No Rent Control
No rent control is good news for investors. Sometimes a building is priced inexpensively because the current seller has owned it forever and has failed to raise the rent regularly (he's comfortable with the income). Because there is no rent control in Long Beach, an investor can take advantage of this situation, buy low and raise rent (anytime and without a reason) and increase his cash flow immediately.
Centrally Located between Los Angeles & Orange County
Many couples choose Long Beach to rent because it is centrally located between their jobs. Often one spouse works in Los Angeles County while the other works in Orange County. Long Beach is not only centrally located but it is a hub for the 405, 605, 710, and 91 freeways with quick connections to the 22 and 110.
Long Beach Attracts an Abundance of Renters
Lots of renters means lower vacancies. And Long Beach has much to offer in the way of employment. The top commercial businesses in Long Beach, based upon the numbers of employees, are Boeing, Verizon, Gulfstream Aerospace Corporation, and the Bragg Companies.
Local hospital are also major employers. Long Beach has Long Beach Memorial Center, the Veterans Affairs Medical Center, St. Mary's Medical center, and Pacific Hospital of Long Beach.
There are major government and educational employers in Long Beach including the Long Beach Unified School District, the City of Long Beach, the United States Postal Service and the Long Beach Transit.
There is a major university, California State University at Long Beach, as well as Long Beach City College (two branches, one on Carson and another on Pacific Coast Hwy). Students and teachers rent apartments.
The Port of Long Beach is one of the world's largest shipping ports empoying an abundance of Long Beach residents. The city also has a large oil industry (both underground and offshore). Manufactures include aircraft, automobile parts, electronic and audiovisual equipment, and home furnishings. Long Beach is the home to headquarters for Epson America, Molina Healthcare, SCAN Health Plan.
All these employmnt opportunities point to a great number of renters. The vacancy in Long Beach is about 2%. This alone should make every investor smile.
Where Can You Find Investment Property in Long Beach?
Long Beach is the 5th largest city in California. Because of this, Long Beach has divided itself into 30 smaller, distinct communities. Areas where you will find apartments buildings (5 or more units), duplexes, triplexes and fourplexes to purchase include Artcraft Manor (mainly duplexes), Belmont Heights, Belmont Shore, Belmont Park, Bixby Knolls, California Heights, the Downtown area, Eastside or Circle area, North Long Beach, Poly High area, Signal Hill, the Westside, and Wrigley. As you can see, there are many areas and lots of choice to meet everyone's pocketbook, from the executive to the not-so-fussy.
So, if you are an investor, experienced or first time buyer, and are looking for a
great investment opportunity (or just a good deal)
units close to the ocean
units in a great neighborhood
at a cost you can afford
that will makie you money,
then investing in Long Beach is for you.
