Investment Property Purchase and Recent Lease in Long Beach

Time Realty Matthew Simmons real estate homes for sale long beach ca and signal hill

I helped a client purchase a 4-plex for $660,000. Recent appraisals show that the 4-plex is worth well over $725,000. All four units are three bedrooms and over 1,000 square feet. There is an additional upside in rent too. Three bedroom apartment buildings are very rare and the tenants often occupy three bedroom units longer than studios, one bedrooms, or even two bedroom apartments.

In addition, I found a tenant for a home in Long Beach before the previous tenant even moved out. The new tenant moved in one week after the previous tenant moved out. The #1 cost for landlords are vacancies, which is why finding a tenant in a timely manner is just as or more important than trying to make an extra $50 in rent.

For example, I rented out the home on Studebaker to a very well qualified tenant for $2,400. $2,400 is top of the market for a 1,060 home in the area; however, I were to spend a month trying to find somebody who was willing to pay $50 extra, it would have taken 4 YEARS to make up for the one month vacancy. Even trying to get an extra $100 a month would have taken two years to break even if I were to accept a one month vacancy.

When working with rentals, the leads are very perishable. Unlike a house, where people often look for months, most renters will find a place within weeks. It is important to get the qualified prospective renters through the home as soon as possible so they can make a leasing decision. You never receive rent when the place is vacant, which is why TIME is of the essence to find the right tenant.

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