Investors · Long Beach
Investing in Long Beach real estate
Where the 2–4 unit buildings are, what they rent for, the rules that change your numbers, and how I size up a building.
Talk to a lender who can shop for you
Talk to a Realtor who knows the buildings
I grew up here. I know these streets block by block: which blocks are full of 1920s fourplexes, which have room for an ADU, and what similar buildings actually sold for. I'll run the numbers with you before you make an offer, not after.
Why Long Beach
59% of Long Beach households rent. The average apartment rent is $2,739 a month (RentCafe / Yardi Matrix, Oct 30, 2026). A port city with a university, an airport, a convention center and 2028 Olympic events keeps renters coming.
Where to look
| Zip | Area | Median rent | What you'll find |
|---|---|---|---|
| 90803 | Belmont Shore / Naples | $3,082 | Beach-close units, highest prices to get in |
| 90802 | Downtown / Alamitos Beach | $3,000 | Condos and older apartment buildings |
| 90804 | Rose Park / Zaferia | $2,300 | Older duplexes and fourplexes, many with ADU room |
| 90813 | Central Long Beach | $2,000 | Lower prices to get in |
| 90806 | Wrigley | $1,895 | Lower prices than the coast |
Median rents: Realtor.com, May 2026.
How I size up a building
One example fourplex, start to finish. Every number comes from the line above it.
The building: 4 units · asking price $1,600,000 · market rent $2,300 per unit
| Step | How it's figured | Example |
|---|---|---|
| 1. Gross scheduled income (GSI) | Every unit rented at market rent, for a full year | 4 units × $2,300 = $9,200 a month $9,200 × 12 = $110,400 a year |
| 2. Gross rent multiplier (GRM) | Price ÷ GSI. A quick first test: compare it to nearby 2–4 unit sales | $1,600,000 ÷ $110,400 = 14.5 |
| 3. Effective gross income | GSI minus vacancy (5% here) | $110,400 − $5,520 = $104,880 |
| 4. Operating expenses | Costs to run the building. Not the mortgage | Property tax (1.2% of price) $19,200 Insurance $4,000 Repairs (5% of GSI) $5,520 Water and trash $4,800 Reserves $2,400 Total = $35,920 |
| 5. Net operating income (NOI) | Step 3 minus step 4 | $104,880 − $35,920 = $68,960 |
| 6. Cap rate | NOI ÷ price. The building's return before any loan | $68,960 ÷ $1,600,000 = 4.3% |
| 7. Loan payments | 25% down investor loan, 30 years, 7.5% (example rate) | Loan $1,200,000 = $8,391 a month × 12 = $100,687 a year |
| 8. Cash flow | NOI minus loan payments | $68,960 − $100,687 = −$31,727 a year |
| 9. Cash-on-cash return | Cash flow ÷ cash you put in (down payment + 2% closing) | $400,000 + $32,000 = $432,000 −$31,727 ÷ $432,000 = −7.3% |
What this tells you: at today's rates, a fully financed fourplex usually costs money each month at first. That's why most Long Beach investors right now live in one unit, buy with partners, put more down, add an ADU, or buy for long-term growth. I'll show you which one fits a specific building.
Illustration only, to show how the numbers flow. Not an appraisal or investment advice. Assumes you manage the building yourself; insurance and repairs vary by building. Rose quotes real loan rates.
Know the rules before you buy
- State rent cap (AB 1482): yearly increases are capped for many buildings 15+ years old (5% plus inflation, never more than 10%), with some exemptions.
- Long Beach Just Cause: ending a tenancy needs a legal reason, and no-fault terminations owe relocation money.
- Notice to enter: 24 hours' written notice is presumed reasonable for showings and repairs.
Not legal advice. Talk to a landlord-tenant attorney before you buy or change a tenancy. These rules can turn a "good deal" into a bad one, so I build them into the numbers.
Room to add a unit
California law opens many lots to ADUs, including many 2–4 unit lots. An extra unit can change a building's numbers more than anything else. I'll check what a specific lot allows before you make an offer.
Looking at 5+ units, retail or commercial? I work with a trusted commercial broker and stay involved from the first call. Book a call and I'll connect you.
You don't have to buy alone
Buy it together
- Two to four friends or family buy a duplex, triplex or fourplex together.
- Split what it takes to get in, so nobody has to come up with all of it.
- Each of you gets your own place, or rent out what you don't use to help pay the mortgage.
- Everyone builds equity instead of paying rent.
Step 1: talk to a lender (Rose, above) about what your group can buy. Step 2: talk to me about where the buildings are.
Questions investors ask me
Can I buy a building with friends or family?
Yes. Two to four people can buy a 2–4 unit property together. Talk to Rose first about the loan, then to me about the buildings. I'll walk you through the rest, including how to set up your agreement.
How much do I need to put down on a pure investment property?
Usually more than on a home you live in. It depends on the loan, so talk to Rose first.
Which zip is the best investment?
It depends on what you want: higher rents near the beach, or lower prices to get in. Send me your budget and I'll show you real sales.
Can I raise the rent after I buy?
Usually within the state cap, with proper notice. Long Beach's just-cause rules also apply. Check with an attorney before changing a tenancy.
Rather talk it through?
Book a call