Southern California is well known for its great weather and sunny beaches. Buying investment properties in these beach cities nearly always guarantees a good return on your capital due to there always being a demand for rentals in beach cities. Almost all beach cities share elements that make them excellent investment properties, including steady long-term growth, high demand for housing, and low vacancy rates.
There are many opportunities for rental properties along the coast of Southern California. Below, we will go over three ideal beach cities for buying investment properties.
Being a popular tourist destination, Huntington Beach is a great location for residents and tourists alike. It is located in Orange County and distinguishes itself from other beach cities by having many premium and high-end stores, restaurants, and entertainment. This increases the demand for luxury homes and condos compared to other beach cities. While luxury rental properties require a higher capital for investment, they also tend to yield higher returns. That being said, Huntington Beach prohibits short–term rentals. Passive income will mainly come from the property's value growth and long-term tenants.
Huntington Beach also has a robust economy and job market with small and large businesses, which provide its residents with ample job opportunities. With a solid job market, there is a high demand for housing. Well-kept single-family homes and multi-family properties tend to have low vacancy rates, making Huntington Beach an ideal beach city for rental property.
Like most beach cities in Southern California, Redondo Beach is also a popular destination for tourism. Like other beach cities, properties in Redondo Beach will come at a premium. However, it will likely be appreciated compared to properties located inland. With an ongoing influx of new residents, rentals in Redondo Beach are rarely left vacant for long.
However, it does come with a caveat: Redondo Beach doesn’t allow short-term rentals either, which means income from properties is limited to long-term tenants and the property's appreciation. This will enable you to grow a long-lasting relationship with your tenants to ensure a steady income.
Like the other beach cities, Long Beach has a demand for housing and is a popular tourist destination. Long Beach is unique in its location, as many freeways intersect with the city. This means it's a great hub city for people working in neighboring cities. Long Beach is considered an “affordable” beach city compared to other beach city real estate markets. However, the properties are consistently in demand and steadily appreciated, just like the other investment properties.
Long Beach does allow you to expand your portfolio more since it permits you to list your property as a short-term rental. Meaning you can adjust your income strategy based on market trends. It's not uncommon for homeowners to build an accessory dwelling unit (ADU) on a single-family property and list it as a rental for an additional income source. For new investors, this provides an opportunity to live in the ADU while listing the main home as either a short-term or long-term rental.
Beach city properties are always in demand and offer great opportunities for savvy investors. Suppose you want to buy an investment property in Southern California or need help managing your current beach city property. In that case, we would like to invite you to call us today at (562) 888-0247 or complete our
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