Blog Post

How to Capitalize on a 2-4 Unit Opportunity in Long Beach

Dustin Edwards • October 23, 2020

Find the Right Opportunity and Grow Your Rental Portfolio

Multi-Unit Property
Managing properties throughout Long Beach, Lakewood and select nearby cities we manage our fair share of 2-4 unit properties. These properties are generally very popular as they have a nearly “home like” quality. They often provide attractive benefits to tenants such as on-site laundry or even a courtyard. For our property owners there is the added benefit of multiple rent checks from a single property!

One question we often get asked by our single family homeowners is, how do I find a great opportunity for a 2-4 unit? For the best values we have found it requires a bit of insight and usually a bit of work. Find out more on how you can find a 2-4 unit property that could be added to your portfolio.

Identify Opportunity Where Rents are Under Market
In any given market there are multi-family properties where the owner hasn’t taken the opportunity to steadily increase rents as allowed by laws and market conditions. For some owners they don’t want to lose great tenants and for others they don’t take the time to analyze market rents to see if more can be earned from their asset. Regardless of the reason, a key opportunity in looking for your next 2-4 unit property is identifying the buildings where the rent is far below the market rate.

When a property has rents below market rate it will make the asset appear as if it is being overpriced. The property may even look like a bad deal. Key commercial real estate metrics of Cap Rate and Gross Rent Multiplier are both based off of the revenue collected from rents. With rents low and the price possibly at nearly a market rate this can mean the property won’t initially look attractive. Take the time to analyze the market rents and even adjust the purchase price in your model, and leverage online rental calculators to help you see how you could create a true win-win if you can acquire the property.

The Units aren’t Updated
To have a strong upside in rents and the property value the units should be modernized. As you are evaluating properties with the largest opportunity look for structures that have been well taken care of (i.e. roofing, foundation, exterior walls, landscaping, etc.) and the units haven’t been updated in more than 20+ years. You might see terms used in the listings such as “original charm” or “authentic interiors” and that is your queue to dig a bit deeper to identify the condition of each unit.

Upgrading the units can be quite a job and one needs to be careful to follow every applicable rental regulation which can mean paying tenants a fee to vacate the property if you want to upgrade all of the units at the same time. Other options include allowing for natural attrition of units and upgrading the unit prior to the next tenant which can be easier on cash flow. Whichever direction you decide a key component for success will be updating the units.

Add an Accessory Dwelling Unit (ADU)
While ADU’s (Accessory Dwelling Units) have largely been associated with residential properties the same opportunity is available to residential income properties. This means you could effectively make a triplex into a 4-unit property (or even larger)! Adding an additional unit to an existing property is a powerful way to add additional income as well as additional total value to the property.  

Multifamily properties do have a number of key aspects for compliance and we would encourage you to research California Legislation AB 68 & AB 881 in greater detail as it will help you to see the opportunity for an ADU as part of a multifamily property.

When it comes to capitalizing on a 2-4 unit opportunity in Long Beach there are many items to consider. To help you understand how you could increase your rental portfolio we invite you to call us today at (562) 888-0247. Or if you prefer a complete evaluation of your property we invite you to fill out our Free Rental Analysis.



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Maintaining high tenant occupancy rates in today’s competitive rental market can be challenging for some landlords, especially those just starting their portfolios. With a large number of options available, attracting and retaining high-quality tenants requires more than the traditional methods. In order to stand out, landlords need to get out of their comfort zones and adopt innovative strategies tailored to modern tenants and their priorities. Below are three such tactics to boost tenant occupancy and reduce vacancies. Highlight Eco-Friendly Features Prospective tenants are increasingly being drawn to sustainable living, this makes eco-friendly features a key incentive for many landlords. Tenants have been prioritizing homes that align with their eco-friendly values. Consider using energy-efficient appliances such as washers, refrigerators, and HVAC systems. This Is a great area to begin though it can be expanded upon with solar panels, and EV charging stations. Being eco-friendly is more than electronics, water conservation measures can be equally important in attracting tenants. Installing water-saving fixtures in bathrooms and kitchens reduces water consumption while potentially saving you or your tenants on the water bill. Furthermore, usingdrought-resistantt and native plants also help conserve water while maintaining curb appeal. Eco-friendly upgrades will oftentimes cater to the growing demand of sustainable living, and create a competitive advantage to attract environmentally conscious tenants looking for long-term occupancy. Adopt Digital Strategies An effective online presence is essential for attracting prospective tenants in today’s digital age. Most potential tenants starting their search online, landlords need to be able to capitalize on digital marketing platforms and social media to showcase their properties and stand out in the market. Posting listings on popular rental platforms like Zillow, Apartments.com or Rent.com to name a few can further improve visibility. These platforms help landlords and property managers to highlight unique features in the property such as the aforementioned eco-friendly upgrade and other amenities you may have on your rental property. Social media sites can also be used as a powerful tool for showcasing rentals and engaging prospective tenants . This is also a great place to share professional photos, virtual tours, and even tenant testimonials. This can help to build trust and interest from potential renters. You can also use social media to maintain healthy communication with established tenants which is a great way to demonstrate approachability and professionalism. This can be a great way to reach a broader audience and improve your rental property’s visibility. Tenant Retention Although not necessarily a new tactic, screening potential tenants is a timeless yet continually evolving strategy for maintaining high occupancy rates. Retaining reliable tenants reduces turnover rates and minimizes costs. To achieve this, landlords need to first prioritize finding the right tenant. Careful tenant screening is vital for long-term success. This typically includes credit and background checks, as well as contacting previous landlords to help you identify financially stable tenants who are likely to care for the property. Another method for retaining tenants is by offering move-in incentives . This can be small perks such as gift cards or something more enticing such as a month of free rent. These gestures can help make a prospective tenant feel more valued, reinforcing their decision to stay in your rental long-term. Even a little kindness can leave a lasting impression. It's crucial to stay ahead of the market to boost occupancy, adopting innovative strategies can help meet modern renter’s appeals. Adapting quickly ensures your rental properties stand out against the competition while attracting tenants in a competitive landscape. If you need help filling in vacancies or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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