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How to Increase or Improve Your Investment in Long Beach Real Estate?

Dustin Edwards • Apr 22, 2022

Consider the following to improve your Long Beach Property

Investing in real estate in Long Beach can feel overwhelming, especially if you're new to real estate. In order to have success you will find that patience is a key component as it takes time to grow your portfolio and reduce your loan balance. With patience as a cornerstone of investing you will discover that you can develop a portfolio of units that have high occupancy and are in good condition.


The world of real estate demands constant adjustments to maintain a high level of renter satisfaction and to ensure your assets are giving you the yield you desire. Though the concept is simple, it’s important to analyze what kind of units to expand to and any financial benefits you can utilize.


Read on to discover 3 ways to grow or improve your Long Beach real estate portfolio.


Adding Different Types of Real Estate Assets

Choosing the type of asset to expand into is an important choice to make. Throughout Long Beach, there are several types of units such as single family homes, condos, townhomes, duplexes, triplexes, 4-units and even apartment buildings.


Single Family Homes

They are the easiest to get started with. Maintenance on single family homes tends to be easier because there are no shared walls or utilities. Keeping the unit rented is much easier because the single family homes tend to be rented by families who establish connections in the community. The downsides of single family homes are the strict limitations to any possible expansion based on zoning laws, and depending on the year it’s built, a single family home could require new plumbing to be installed as the old ones become corroded.


Townhomes and Condos

They tend to be part of larger complexes but they are also a viable way to expand your portfolio since the initial purchase price tends to be lower. Maintenance is also reduced when compared to traditional homes because most tend to have an HOA that takes care of any large challenges with maintenance items. The caveat here is shared walls as well as any restrictions the HOA may incur on your unit. You may not be able to rent out to anyone you’d like or if you have an affordable maintenance person, the HOA may require you to use their more expensive person.


Duplexes, Triplexes, and 4-units

These types of properties are among the most typical units for investors that are starting out. The size of 2-4 units provides enough flexibility in both purchase price, maintenance costs, and tenant availability. Prices for these units are slightly higher than a townhome or a condo but there are no monthly HOA fees or guidelines to abide by. This means you can utilize your own maintenance person. More importantly, tenants tend to gravitate towards these smaller units because they often have a shared yard, not many neighbors, and provide a better home feeling than apartment buildings.


Small Apartment Buildings (5-15 units)

These are usually the best alternative to grow your portfolio. Managing small apartment buildings can be a challenge if you’re coming from a single family home, but the maintenance is incremental and most tenants are comfortable in a small unit that has shared outdoor space. The largest barrier to entry is the initial cost to purchase one. However there are ways to finance these units.


Expand Your Existing Rental

You can improve your investment by expanding rental properties you already own. Adding a second bathroom can be an appealing feature to single family homes. Second bathrooms are an attractive commodity with tenants with families and with so many people working from a home office having a second bathroom can be a useful asset when adjusting rent prices.


Bedrooms are some of the first things that get advertised when a rental unit goes into the market. Having more bedrooms allows a property to rent for higher prices. Many tenants are looking for extra work space meaning an additional room can increase the market value of your rental.


Accessory dwelling units (ADUs) have the highest upfront cost however, the costs for scaling up an ADU is not exponential. Meaning you can have more value for larger units. Granted the overall size is limited by the amount of space you have available.


1031 Exchange

If you feel like it is time to sell your investment property for something bigger, consider a 1031 exchange. Like the saying goes, it's like hitting two birds with one stone.


A 1031 exchange is when in real estate, you sell one investment property like a single family home and reinvest the proceeds from the sale in another property of equal or greater value like a duplex or 4 unit, and allow capital gains taxes to be deferred.


When choosing a replacement property there are some rules. The property must be held for investment, and not for personal use or resale. Usually this suggests ownership of at least two years. You have to identify a replacement property for the sold assets within 45 days and complete the exchange within 6 months. 


If you need any help increasing or improving your Long Beach real estate or have questions about a 1031 exchange feel free to call us at (562) 888-0247 or feel free to fill out our free rental analysis to see what your rental could yield today.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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