Last updated on June 21st, 2023
Long Beach airbnb property investment
Have you ever been fascinated by California? If yes, then it’s about time to explore Long Beach! For some people, owning a beachfront property is a lifelong dream. Particularly in California since almost everything you need is on-hand and readily available. If you are eager to make this dream come true by earning a passive income at the same time, then purchasing a property with a beautiful view of the sea is ideal in Long Beach!
Known as one of the most populous cities in California, Long Beach is a coastal city that has an urban epicenter with beautiful oceanfront views. Perfect for adventurers and travelers with families, Long Beach has several tourist attractions such as waterparks, nature trails, an aquarium (the world’s largest!), and diverse restaurants.
Top Reasons for Buying An Airbnb in Long Beach, CA
What else is there to know about Long Beach aside from being one of the popular summer destination in California? Here are some of the major reasons why you should consider buying a property for Airbnb in Long Beach:
1. Increasing Tourist Arrivals
Based on a recent report from Long Beach Airport, there are increased number of travelers in November 2022 due to thanksgiving week. Interestingly, the economic profile of Downtown Long Beach also recently observed a 51% increase of unique visitors! If you’re down to getting your property fully booked in Long Beach, then the high volume of tourists is certainly one of the advantages.
In line with this, accurate data from Airbtics also reveals that the domestic & international guests who are visiting Long Beach are usually from countries such as Germany, Canada, UK, France, and others from across the world. In short, get ready to host various international travelers!
2. High Demand for Accommodations
Let’s face it, Long Beach has an incredibly strong job market with plenty of thriving attractions – hence the rising demand for accommodations. Home Union confirms that there is a higher demand for single-family homes with little supply, so the best time to invest in Long Beach is NOW.
3. Affordable Vacation Destination
Setting aside the fact that Long Beach offers beautiful views and several must-try restaurants, people are also visiting the area because it’s generally affordable. Perks for both investors and tourists!
What to Expect When Buying A Property in Long Beach?
Since we discovered the pros of investing in Long Beach, let’s discuss some of the cons so you can know what to expect when living in this city. It’s always better to look at the two sides of each coin in order to properly set your expectations.
1. Older Properties Available
While Long Beach properties for sale can certainly attract more long-term renters and travelers, one of the cons is that there’s a high percentage of old homes available as seen on Neighborhood Scout’s recent data. This means that as a property investor, you have to expect that there are possible renovation & maintenance costs since the majority of homes are built from 1940-1969s.
2. High Crime Rate
Truth be told, for popular cities like Long Beach, crimes are always occuring. Tourist areas are usually guarded by the authorities, and although it’s a safe place to visit, Long Beach is not devoid of crime. Crime Grade states that if your property has no home security system in Long Beach, there’s a 300% chance for robbery. Scary as it may seem, this is something that property investors should be alert of!
Best Neighborhoods for Airbnb in Long Beach
Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Long Beach. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods in Long Beach:
1. Alamitos Beach
- Annual revenue: $56,021
- Average daily rate: $134
- Occupancy rate: 96%
2. Willmore
- Annual revenue: $51,967
- Average daily rate: $140
- Occupancy rate: 83%
3. Bixby Knolls
- Annual revenue: $33,064
- Average daily rate: $106
- Occupancy rate: 76%
Is Property Investment Profitable in Long Beach?
Using a short-term rental profit calculator, it was discovered that a 2-bedroom apartment in Long Beach can generate an annual revenue of $54,234 with a steady occupancy rate of 77% and a nightly rate of $197.
Long Beach airbnb property investment
Long Beach Homes for Sale
Buying a beach house property will not only let you have access to a delightful vacation spot, but it can also bring an excellent return on investment and become a reliable income stream! It may be difficult to find the best properties that have the potential to produce high yields and capital growth, and this article will certainly help you through.
Here are some of the Long Beach waterfront homes for sale, along with the calculated gross rental yield, cash-on-cash return, and annual revenue. Bonus: City center and mountain/hillside properties are also featured below:
19548 E Cypress St #4, Covina, CA 91724
1. Studio-type Waterfront Property for Sale Long Beach
- 1.9 miles to Cedargrove Elementary School
- Asking Price: $79,000
| GROSS RENTAL YIELD | 29.77% |
| ANNUAL REVENUE | $23,516 |
| CASH ON CASH RETURN | 63.53% |
8 Ice House Cyn, Mt Baldy, CA 91759
2. 1-Bedroom Mountain/Hillside Type Property for Sale Long Beach
- 1.9 miles to Mt. Baldy Joint Elementary School
- Asking Price: $140,000
| GROSS RENTAL YIELD | 23.81% |
| ANNUAL REVENUE | $33,333 |
| CASH ON CASH RETURN | 45.66% |
8651 Foothill Blvd SPACE 121, Rancho Cucamonga, CA 91730
3. 2-Bedroom Type Property for Sale Long Beach City Center
- 1.7 miles to Bear Gulch Elementary School
- Asking Price: $199,000
| GROSS RENTAL YIELD | 25.18% |
| ANNUAL REVENUE | $50,116 |
| CASH ON CASH RETURN | 49.78% |
3595 Santa Fe Ave SPACE 227, Long Beach, CA 90810
4. 3-Bedroom Type Beachfront Property for Sale Long Beach
- 0.3 miles to Cabrillo High School
- Asking Price: $299,900
| GROSS RENTAL YIELD | 23.47% |
| ANNUAL REVENUE | $70,374 |
| CASH ON CASH RETURN | 44.63% |
1576 W 23rd St, Long Beach, CA 90810
5. 4-Bedroom Type Waterfront Property for Sale Long Beach
- 3.9 miles to Central Regional High School
- Asking Price: $315,000
| GROSS RENTAL YIELD | 29.25% |
| ANNUAL REVENUE | $92,131 |
| CASH ON CASH RETURN | 61.98% |
Conclusion
Based on research, Long Beach is generally a great place to live and invest in! But before making a bold move and spending money, it’s highly recommended to discover your preferred property type’s profitability. To make sure that a property can generate a nice cash flow, the right neighborhood should be targeted and potential revenue calculated using an Airbnb calculator.
Pro-tip: Install a reliable home security system and prepare for renovation costs (if applicable), then one should worry less about the cons of property investment in Long Beach, California!
