When purchasing any rental income property there are a few essential items to consider when evaluating it as an investment property. Such as your ROI (return on investment) or NOI (net operating income) among other items.
When speaking specifically about 4 unit properties in Long Beach however, there are some unique aspects compared to duplexes and single family homes.
Below are a few elements you’ll want to consider when evaluating a 4 unit rental property.
Like duplexes which are most commonly built symmetrical, 4 unit properties sometimes are also built identical to each other. This isn’t always the case. Having different types of units available for rent allows a varied mix of potential tenants. Studio, single bedroom or 2 bedroom units allows you to cast a wider net to attract single tenants or small families. In some cases if a tenant is happy living in your rental unit when they’re single, they may even want to move to a larger one when they begin to grow their family. Allowing a diverse rental mix can help achieve a nice yield
See if the property has onsite features or amenities like connections for washers and dryers or a communal laundry, air conditioning, and outdoor spaces.
Tenants love to avoid trips to the laundromat making in-unit laundry a major incentive and convenience. Luckily some tenants have their own washers and dryers meaning just having connections for them is enough. Though it goes without saying that if you can provide each unit with their own washers and dryers it can make your property stand out. If neither of these options are provided if the property has a communal laundry, many tenants will still prefer to carry a load of laundry to the common washer than drive down to the local laundromat.
With the weather being as hot as it's been recently, air conditioning is especially desirable to tenants. HVAC systems are preferable versus window unit air conditioning due to higher efficiency, better curb appeal and longer lifespan.
When looking for rental properties don’t forget to pay attention to the outdoor space. Balconies, porches, and patios give tenants a sense of a larger living space without adding more walls.
Parking is a feature that is incredibly important for tenants who commute. Off-street parking is more desirable as it guarantees a space even on busy days and can avoid parking tickets.
You’ll find it’s easier to find a tenant when you include parking in the rent. Depending on available parking, you charge separately for each spot allowing for tenants who don’t drive the opportunity to save some money while tenants with multiple vehicles can pay for additional parking spaces.
The neighborhood in which you purchase your 4 unit property can determine how easily you can attract tenants. Buying near the community college can attract college students which can fill vacancies quickly while at the same time make it difficult to find tenants during summer break
Good quality k-12 schools and parks can attract younger families looking to establish themselves. This can lead to the aforementioned long term tenants that can live in your rental property for years as they grow.
The area where you buy any investment property also affects how much you can charge for rent. Before you invest, be sure to have an idea of how much other units in the area are being rented for.
Finding the right investment property requires a little bit of research, if you need help evaluating a property you are looking at feel free to call us at (562) 888-0247 or feel free to fill out our
free rental analysis to see what your rental could yield today.