Profile picture for Broundog

Is it a good time to buy investment properties in Long Beach Ca, ?

I have aprox. $ 450,000 to invest, thinking stocks or apartments?
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May 12 2011 - Long Beach
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Answers (34)

There are properties in Long Beach that have comparable returns on investment.  I've been working with several investors and Long Beach IS a good place to look when it comes to finding a property with good return on investment.  There are some factors to consider with property investment in order to make a smart purchase.  Here is an article that may help inform you on how to make a smart investment in rental properties.

http://www.reiclub.com/articles/clear-on-good-deal
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September 19 2011
Profile picture for sunnyview
The question is the same. Properties in Long Beach seem to have a higher buy in cost than properties in other parts of SoCal. Unless the returns on rent are higher or the rental pool is significantly stronger, then would seem to make no sense to invest more cash in a property for the same ROI. Any thoughts?
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September 19 2011
I've been working with several investors and Long Beach IS a good place to look when it comes to finding a property with good return on investment.  Long Beach is a huge city, and there are parts that may not have as high a return as what's ideal.  However there are areas of Long Beach where the ROI is good.  North Long Beach is a solid area if you're looking to purchase property and see a positive return.  It's densely populated and is considerably cheaper than Belmont Shore or Naples and is close to Lakewood Center and major freeways.  I own and sell in North Long Beach and the cost of owning to renting is much closer than other more affluent areas.

There are some factors to consider with property investment in order to make a smart purchase.  Here is an article that may help inform you on how to make a smart investment in rental properties.

http://www.reiclub.com/articles/clear-on-good-deal
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September 19 2011
Profile picture for sunnyview
Ok I'll bite. What kind or ROI are you seeing in Long Beach right now Jose? It seems to me the the buy in cost is higher than in other communities with comparable rents.

Why should someone choose Long Beach to invest in over less expensive markets? What's the advantage?
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September 11 2011
yes, great opportunity to get positive cash flow with low rates and low prices!!
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September 11 2011
Profile picture for Dunes....
All's well that ends well...See ya around the Forum Jeremy
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June 27 2011
As far as the inflation component goes, I was referring to its impact on rents. Buying income property for purposes of appreciation is a poor investment choice. I agree with you about the NAR predictions. It is my assertion that they are based solely on the profits of their members and not for the protection of consumers. In fact, if you read the article here, you will see that my opinion differs pretty dramatically from the NAR norm! I am anything but a pom pom waving Realtor.

Provided there is wage increases that accompany the inflation (Not stagflation!), rents should increase with the CPI and the general devaluation of the dollar. Fixed rate mortgage goes nowhere, rents increase...pretty good strategy. 

There was no contact information in the post. That would be kind of silly. My information is available on the site. As I stated earlier, Chase has a five day marketing period prior to accepting any offer, be it from me or any other broker. If there was a presumption that an offer would be submitted and accepted prior to the marketing of the property, it was erroneous. If anyone got that impression, please accept my apologies.
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June 27 2011
Profile picture for Pasadenan
"Was I not the one attacked for posting a perfectly relevant response to the topic?" -

No, no-one on this thread attacked you.  And your response was not relevant, nor even "perfectly relevant", but most of the responses were a direct violation of the "terms of use" of the site, which means they were also "completely unethical".  (But then the entire NAR code of ethics is completely unethical as well).

All the "call me", "call me", "call me" are clearly "self promotion", and is not acceptable on the site, and you will note that all the contact info was removed by Zillow, clarifying their position on this issue.

And Roberto was completely correct; even if you let people know that you have listings that will be coming up in the near future, and even if you accept offers before something is listed; you can't give anyone a "great deal" before it is listed without violating your contract with the seller, as well as violating NAR's pointless and useless code of ethics that is only designed to protect Listing Agent Realtors® at the expense of the general public.

Besides, it is well known that exceptionally high Zestimates only means the properties are "fixers" and that you will be putting way more into the property than it is worth.  (And due to the recent revisions in the Zestimates; it will take at least 3 months before one can determine the applicability of a Zestimate for any specific area, and by then they will have redone them all again as this is presently only an interim release).
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June 27 2011
Profile picture for Pasadenan
"That said, most economists are predicting some pretty heavy duty inflation on the horizon. Provided there is corresponding wage increases, rent should move along relatively commensurate with that inflation." -

Everyone knows that inflation doesn't move equally in all sectors concurrently!  We have a minimum of 3 years before the housing market even gets close to finishing adjusting for NAR's purposeful attempt at bankrupting over 30 nations and over 13 million U.S. households.  Their bubble creation propaganda and government lobbying was pure foolishness no matter how you measure it.

And since it is already substantially over inflated, any other inflation will only be to allow other sectors to try to catch up.  So, if you want to "invest" in something to compensate for inflation, you are better off investing in something that is not already inflated.
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June 27 2011
Profile picture for Dunes....
Lordy Lordy ..I'll just stick to answering questions from now on

Apologies Broundog
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June 26 2011
Dunes:

Thanks for the thumbs up(s). They're appreciated. If my comment came off as a generalization about reviews, please accept my apologies. The fact is, that those who receive reviews represent simply those that have prioritized their solicitation, not those who have performed admirably. I was merely taking a snipe at a detractor. Petty, huh?!

Sunny:

You are 100% right. This thread is so off topic, it's not even funny. Please allow me to put that right!

The Long Beach real estate market is much like any other, a giant mushy mess without much in the way of consistency or predictability. That said, most economists are predicting some pretty heavy duty inflation on the horizon. Provided there is corresponding wage increases, rent should move along relatively commensurate with that inflation. So, purchasing apartments, especially 2-4 unit buildings (Based upon the ability to obtain fully amortized, low interest rate financing), is a fine choice to invest into that inflation. With its very high density of small apartment buildings, Long Beach can be a very good location to consider that kind of strategy.
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June 26 2011
Profile picture for sunnyview
Lordy, lordy. This thread reads like a school yard dust up. Back to the question for a moment.

I still say it's not time to buy in Long Beach because it seems that there are  higher rent to value ratios in other CA markets. Why should someone choose Long Beach to invest in over less expensive markets? What's the advantage?
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June 26 2011
Profile picture for Dunes....
Jeremy... I never addressed the issue between you and Rob..never said he was right or you were wrong..If you feel you were attacked you have every right to complain, correct, request something be done, defend yourself, attack Rob back..whatever

What I do question is your comment suggesting the lack of "Reviews" probably meant an Agent wasn't doing as many Transactions as someone with Reviews or as good as or had fewer friends..whatever.

That comment carries beyond Rob and is derogatory to a Number of Agents..unfairly IMO

What I'm saying is.... if Rob is "talking out his backside" about you how does that in anyway justify you talking out of yours?

I'm not casting or suggesting you as the "Villain".
In fact I was interested hearing your response..I've given you TU's in the past, I don't think you're a Bad Guy, dishonest or not a Good Agent..I don't think Rob is always right..(I'm sure he doesn't think I am either)

I was just sayin..


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June 26 2011
I, truthfully, tell someone that I have a couple of REO properties that are in pre-marketing and am called a liar (The exact term was BS).  Then am accused of violating my fiduciary duty. I respond with a flippant comment, and am, somehow, the villain? Was I not the one attacked for posting a perfectly relevant response to the topic?
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June 26 2011
Profile picture for wetdawgs
When all else fails, divert the participants from the subject at hand by attacking a poster?  This is not a demonstration of behavior that would make me go out an hire someone.

Many are good at gaming the system with reviews, so while I may read them when I'm considering hiring someone, the lack of reviews on Zillow would not make me avoid the person.
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June 26 2011
Profile picture for Dunes....
I read the thread..

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June 25 2011
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June 25 2011
The statement was about quantity,not quality. Reviews are not necessarily a guarantee that one is doing a good job, but an absence of them certainly can be indicative of low volume or few friends! B-)
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June 25 2011
Profile picture for Dunes....
Just saw this thread..

"zero reviews...you must really kill"..
If you do not have any Solicited Zillow  Reviews you must not be a Good Agent..

LOL.. Who's talkin out of their Backside?
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June 25 2011
Real estate might be a good vehicle for you depending upon your long and short term goals, where you would like to own property, and whether you plan to and have the ability to manage the property yourself. 

Apartment building investments are not for everybody, and if this is your first investment in rental property, you need to be extremely cautious.  I often recommend to Clients starting out to get their feet wet with a single house or duplex to learn the business.

Real estate is generally not advisable for short term investment.  Apartment buildings should usually be purchased for even longer term investment than perhaps a single family home,  The idea of "flipping" property is not recomendable for newcomers, and difficult even for seasoned investors.  There is a lot of hype out there that makes it sound easier than it is.
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June 25 2011
Rob:

Chase requires a five day marketing window prior to responding to an offer. You were talking out of your backside and owe me an apology! Don't paraphrase a response that is five inches below. My exact statement was "...have a couple of REOs for Chase that aren't on the market yet. I would love to discuss with you. Give me a call!"

Not once did I imply that I would do anything untoward or unethical. If I were not premarketing properties that I had in eviction, then I would be very lax in my fiduciary responsibility, indeed. [edited by Zillow moderator.  Please refer to Good Neighbor Policy about respect!]
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June 04 2011
BTW, the BPO on that property is about 25% below its Zestimate.

Yeah and I got a two ply roll in my bathroom that says 'Zestimate'.

If you hang around these hallowed halls long enough you will find that most homeowners loath and detest the Zestimate - whether or not it's accurate.
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June 04 2011
Jeremy:

perhaps chase would like to know that you are advertising "special deals that aren't on the market yet..." to potential buyers. I'm sure they would be thrilled to think their properties can be bought cheaper than if they were listed and everyone had a chance to buy them. 

Fiduciary duty and all, remember that? 
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June 04 2011
BTW, the BPO on that property is about 25% below its Zestimate...just saying.
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June 04 2011
Well put Vince. The properties that I cited are, indeed, not listed. It goes to my initial response to the question. I informed the poster that I had properties that may fit his investment profile that are not yet on the market. The fellow to whom I was responding commented as though I were not being truthful about the statement. 

I am quite certain that he doesn't sell REO property (I sell for Chase, Bank of America and Met Life). He seems to lack the understanding that an REO broker's active listings represent the tip of the iceberg, and a good three to five times as many properties as the agent has listed are in various stages of the eviction/pre-marketing process. I got a little bit irritated by his statement.

Appreciation is a bonus when considering income property. It can be a fantastic time to buy, but the numbers have to make sense. I recommend my clients look in the 8-9 GRM range depending on risk tolerance. 2-4 unit financing is absolutely insane right now, and with inflation a virtual certainty, a fixed rate loan makes the investment very attractive from a cash flow perspective. I am telling all of my clients to wait for the right deal, but to jump on it when it appears. The market will probably dip again, but not so much as to ignore something right in front of you.

By the same token, the market is NOT moving up any time soon. All economic indicators are saying that the economy is stagnant, housing is wallowing and even when things do turn around, there are probably going to be hiccups along the way. Haste is, absolutely, not necessary. The banks have been very slow to release their inventory. That means that there may never be a "wave" of foreclosures, as previously forecast, but my contacts say that nothing is going to change for at least three years.
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June 04 2011
Every agent will tell you its a great time to buy, always. I have never seen an agent on this ADVICE section or elsewhere say its NOT a great time - ever. But of course you are asking agents, what else do you expect !?!?! Given that reality, I wouldnt ask an agent about 'timing' per se, but maybe do your research with non-agnets and data suppliers of real estate information such as RealQuest, Dataquck, etc.

From my experience as an appraiser in the So Cal area, I noticed small unit rental investment properties 'come back' in value a few years AFTER residential SFR property have.

IE in the last RE cycle, SFR property values started cycling upwards in 1995 in the LA market, with 2-5 units rental units do the same in 1997-1998 (a two to three year lag time). But of course that was THAT cycle, and its anyones guess if THIS cycle will be similar.

Take for instance Jeremy's 'listing' on 1650 Pine here... Though it does not appear to be currently listed in the MLS for sale (nor Gardenia Avenue), its Zillow chart shows its value going UP slightly though its 'city' chart and zip code value appears to be going down slightly Not scientific by any means, but kinda what I was talking about.

If and when the economy gets better, in general, buyers will spend their money firstly on their own housing, then investments, ie rental properties. Hence you will typically see SFR values recover first, THEN other types of investment properties.

Now this will differ depending on how LARGE an apartment you are talking about, city incentives, zoning and other factors.

PS...'flips' properties are a poor investment idea, if you are serious about your financial future. The only ones making money on 'flips' are agents, though they will tell you otherwise.
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June 04 2011
Rob:

You have access to public record, so you can confirm that the duplex at 1077 Gardenia Avenue Long Beach, CA 90813 and the triplex at 1650 Pine Avenue Long Beach, CA 90813 are both owned by Chase. I am the listing agent for both and am working on evictions presently. In fact, you could even contact Chase directly to confirm that too.

Agents are supposed to conduct themselves in a manner that is respectful to other agents. I have no idea how you operate in Arizona, but maybe focusing on giving the person that posted this question some salient advice rather than posting material that is contrary to the use policy of this site, and the NAR code of ethics would be a more productive use of your time. 
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June 04 2011
"i have special deals that aren't on the market. call me call me" GAG on the bs!
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June 04 2011
YES 
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June 04 2011
Why not flip properties? You don't have to commit your entire capital, you typically get it back plus profits within a few months, the returns are typically much larger than you would get with rents. Flips in Long Beach and surrounding cities are a very good investment right now. Let me know if you are interested.

Andy
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May 12 2011
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