Blog Post

What is Your Approach for Investing in Real Estate in Long Beach?

Dustin Edwards • Apr 02, 2021

Find the Approach that Matches Your Personality

Real Estate Investment
When you first start investing in real estate in Long Beach it can feel overwhelming. There are countless books, nearly endless videos and plenty of “gurus” who are happy to coach you to success with your real estate investing goals. While you certainly can pick up tips from nearly anywhere we have found that investing in real estate most commonly falls into a few categories. Understanding which category you fall into as an investor can help you to get the most from your investments...and as you go on in your investing path you certainly can have investments in each category.

Buy and Hold
Buying and holding an investment is as straightforward as it seems. In this form of real estate investing the investor usually identifies a property that is nearly turn-key (i.e. doesn’t need repairs/updates) and then leases it to a tenant. Of course they could involve a local property management company for the lease up portion, but the key here is that the investor purchases the property at an optimum price, does not need to capitalize the property with additional investment dollars, and then leases it up with the goal of holding it for an extended period (usually 10 years or longer).

Buy, Update, and Hold
In this category of real estate investment the investor identifies a property (whether that be a single family home, condo, duplex, etc.) that isn’t up to today’s tenants goals. This could mean that the property hasn’t been updated since its original charm of the 1940’s or 1970’s but is structurally sound none the less. While “charm” can be nice if you are a homeowner tenants generally want to know they are stepping into a turnkey property when they are going to be paying top dollar for the rental.

An investor that has this approach will often look for a property where they can bring a fresh update to key areas such as the kitchen and bathroom(s) so as to demonstrate to a tenant that they will enjoy a top notch property. Preferably the updates are more on the cosmetic side (i.e. including such items as cabinets, counter tops, etc.) but not with the goal of structural items (i.e. roofing, foundation, etc.) as the structural items aren’t contributors to increasing the rental value.

Buy, Improve, and Hold
An investor with the approach of improving the property is looking to add tangible value to the property by adding square footage. The investor who adds square footage understands that in Southern California you could be paying up to $350 a square foot to develop the property further but the value of that square footage can be $500-$700+ in the Long Beach market.  

Adding square footage can come in the form of adding a second bathroom to make a common 3 bedroom, 1 bathroom home a highly desirable 3 bedrooms and 2 bathrooms or it could mean something as dramatic as adding an ADU to a property. When you look to improve a property, take time to do careful analysis, such that you don’t over build for the given neighborhood.

One area you didn’t see us address is that of ground-up new construction. While this is certainly a possibility, we have found that where Long Beach is currently in it’s growth cycle generally the ground up new construction projects are larger multifamily developments. 

If you’d like guidance on any category of investment we shared here we invite you to call us today at (562) 888-0247 as we’d be happy to help. When you want a quick check to see how much your property could fetch in rent we invite you to fill out our Free Rental Analysis where we perform a comprehensive comparison to share your rental stacks up to the competition.

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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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