Latest / Own More Doors / #61 How Much Is a 4-Plex in Belmont Shore REALLY Worth?

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#61 How Much Is a 4-Plex in Belmont Shore REALLY Worth? · Own More Doors

• 0:00
  SPEAKER_00: What's up, everyone?
• 0:01
  SPEAKER_00: Welcome to another Own More Doors podcast.
• 0:03
  SPEAKER_00: I'm Juan Weezar.
• 0:04
  SPEAKER_00: And today I'm going to be doing uh covering a topic I've never covered before is what does a foreplex, a quadruplex sell for in Belmont Shore?
• 0:15
  SPEAKER_00: Okay, now if you've been following my channel, you know that we've covered that no one else is covering the fourplex market like we are in the city of Long Beach.
• 0:23
  SPEAKER_00: And in Long Beach alone, we have 2,899 forplexes in Long Beach.
• 0:29
  SPEAKER_00: We have more fourplexes in Long Beach than any other city.
• 0:33
  SPEAKER_00: Um, and so as a company, we specialize.
• 0:37
  SPEAKER_00: One of the things we do is we sell more fourplexes than anybody else.
• 0:41
  SPEAKER_00: We have more listings and we represent more buyers.
• 0:43
  SPEAKER_00: So we know the market very, very well.
• 0:44
  SPEAKER_00: And so I've been doing fourplex market updates for years now.
• 0:49
  SPEAKER_00: And we've been able to represent a lot of buyers, a lot of sellers.
• 0:53
  SPEAKER_00: We've helped people trade up from a four-plex into an eight-unit or a 10 or 12 unit building.
• 0:58
  SPEAKER_00: So we know the market well, but today is what's a fourplex go for in Belmont Shore?
• 1:03
  SPEAKER_00: And so why am I talking about Belmont Shore?
• 1:05
  SPEAKER_00: Well, Belmont Shore, for those of you who know or don't know Long Beach, is one of our most desirable areas.
• 1:10
  SPEAKER_00: And so um I want to give you stats specifically to this area because a lot of times people will contact me and they'll say, Hey, I'm looking for something in the shore.
• 1:19
  SPEAKER_00: And um, and so let's just dive right in.
• 1:22
  SPEAKER_00: And so Belmont Shore, its popularity is for a lot of reasons.
• 1:27
  SPEAKER_00: One, it's right on the coast here in Long Beach on Ocean Boulevard.
• 1:32
  SPEAKER_00: It includes our pier.
• 1:33
  SPEAKER_00: You got Livingston Drive, um just north of us, 2nd Street, and then we drop down to Bay Shore Avenue.
• 1:41
  SPEAKER_00: It gets a little bit of the peninsula, but not a whole lot, and it doesn't include Naples, okay?
• 1:46
  SPEAKER_00: And just so you know, there's 122 forplexes in Belmont Shore.
• 1:50
  SPEAKER_00: And so today I want to talk to you well, what's it cost to have a forplex in Belmont Shore?
• 1:56
  SPEAKER_00: Because if it's more desirable, I'm gonna tell you right now it's gonna be more expensive, right?
• 2:02
  SPEAKER_00: And so let me just give you guys some stats that I've that I've gone through before.
• 2:05
  SPEAKER_00: And this is kind of year-to-date stats.
• 2:08
  SPEAKER_00: So far, year to date, we've had in the city of Long Beach, year to date, um, and we're now in October, we've had 62 four-plex sales.
• 2:18
  SPEAKER_00: And so sales have are significantly up.
• 2:21
  SPEAKER_00: They're up by 58% when we compare it to 2023 figures and 2024 figures.
• 2:26
  SPEAKER_00: So sales are up of fourplexes, which is a plus.
• 2:29
  SPEAKER_00: And um, the average fourplex price is 1.423.
• 2:35
  SPEAKER_00: So call it 1.4 million.
• 2:38
  SPEAKER_00: It's been that for some time, and it's up from last year.
• 2:41
  SPEAKER_00: Last year was a down year, but the years before, we were right around 1.4.
• 2:46
  SPEAKER_00: So that's kind of where we've been trailing this whole time.
• 2:49
  SPEAKER_00: Um, so let's get to well, if the average vorplex in Long Beach is 1.4, what's the average fourplex sell for in the shore?
• 2:58
  SPEAKER_00: And so the the the price is 1,936,000.
• 3:03
  SPEAKER_00: 1,936,000.
• 3:05
  SPEAKER_00: So it's much more desirable.
• 3:07
  SPEAKER_00: Uh, people want to live there, people love the proximity to all the shops, to the stores, to the restaurants, everything.
• 3:14
  SPEAKER_00: Talk about walkability.
• 3:15
  SPEAKER_00: That's Belmont Shore.
• 3:16
  SPEAKER_00: And let me just clarify something because uh a good friend of mine, Mark Milan, taught me this.
• 3:20
  SPEAKER_00: He said, Juan, you know, when I first moved to Long Beach and I came to college here and I started working for Mark, uh, he's I used to call it Belmont Shores.
• 3:29
  SPEAKER_00: And he's like, Juan, everyone calls it that.
• 3:32
  SPEAKER_00: He's like, it's Belmont Shore.
• 3:33
  SPEAKER_00: There's only one shore.
• 3:33
  SPEAKER_00: So anyhow, Belmont Shore, okay, for those that are not from Long Beach.
• 3:37
  SPEAKER_00: And so because it's desirable, you're gonna have a higher price tag, okay?
• 3:44
  SPEAKER_00: And so this this year alone, year to date, we've had four sales.
• 3:49
  SPEAKER_00: One of the sales was mine at 133 Corona.
• 3:52
  SPEAKER_00: And yeah, we were right at 1.7 million.
• 3:56
  SPEAKER_00: We sat on the market for a long time.
• 3:58
  SPEAKER_00: But for the most part, if you have a fourplex in the shore, the the the average close price is 1,936,000.
• 4:08
  SPEAKER_00: Now, when it comes to gross rent multiplier, so this is um, you know, I tell people, hey, when you're when you're buying a property, um, you want to use market derived data.
• 4:21
  SPEAKER_00: And so as of today, the the the four the gross rent multiplier for the shore, Belmont Shore, is 13.26.
• 4:30
  SPEAKER_00: So what does that mean?
• 4:31
  SPEAKER_00: You take the annual rent of your fourplex or take the annual rent of the fourplex that you want to buy.
• 4:36
  SPEAKER_00: So just add up all the the four units, multiply it times 12 to reflect the entire year.
• 4:42
  SPEAKER_00: That's annualizing income.
• 4:44
  SPEAKER_00: Don't subtract any vacancies, don't subtract any expenses, and just take that amount, multiply it by 13.26, and you should get kind of a rough figure of what it's really worth.
• 4:55
  SPEAKER_00: Now, granted, if the rents are super, super, super low, you may not get the right figure.
• 5:02
  SPEAKER_00: And we will have to look at that property.
• 5:03
  SPEAKER_00: But for the most part, it's selling for 13.26, which is higher than the Long Beach average.
• 5:08
  SPEAKER_00: It makes sense.
• 5:09
  SPEAKER_00: It makes sense that someone would pay a higher multiplier to have a property in that neighborhood.
• 5:16
  SPEAKER_00: Now, when it comes to price per square foot, Belmont Shore is it's comes to no surprise, Belmont Shore is selling at$646 a square foot.
• 5:26
  SPEAKER_00: So what does this mean to you?
• 5:27
  SPEAKER_00: If you're an owner, if you're an owner, you take your building, whether it's uh$3,000,$2,800,$2,500,$4,000, and you could multiply it times$646, because that's per square foot price, and come up with value.
• 5:42
  SPEAKER_00: That's that's what the going rate is right now.
• 5:45
  SPEAKER_00: Okay.
• 5:46
  SPEAKER_00: Now, granted, what you'll know is sometimes when the property is really small in square footage, that number could spike up significantly, jump up significantly.
• 5:55
  SPEAKER_00: Also, if you have a fourplex that's super big, just bigger than normal, you may not be able to get$646 a square foot.
• 6:03
  SPEAKER_00: You might need to drop it.
• 6:04
  SPEAKER_00: So, I again, if you're too big, you might be above the average, or you might have to drop it from the average.
• 6:10
  SPEAKER_00: If you're too small, in a lot of cases, you could bring it up.
• 6:13
  SPEAKER_00: And so that would be a huge plus.
• 6:15
  SPEAKER_00: So there you have it.
• 6:16
  SPEAKER_00: Um, Belmont Shore, a lot of times when people call me, that's where they first want to buy.
• 6:25
  SPEAKER_00: They feel that it's safer, they feel that they're gonna get a higher rent, and they feel that um that it's more desirable, that they're gonna have less issues.
• 6:35
  SPEAKER_00: Now, in terms of the less issues part, not from a maintenance, because whether you're on the west side or north Long Beach, um, maintenance is maintenance anywhere you go.
• 6:45
  SPEAKER_00: Um, will your property in the shore rent out quicker?
• 6:49
  SPEAKER_00: Possibly.
• 6:50
  SPEAKER_00: But here's the thing that I found out a long time ago.
• 6:52
  SPEAKER_00: Just because you have a property in a good area doesn't mean that everyone wants to live there.
• 6:56
  SPEAKER_00: There's people who feel comfortable in the neighborhoods that they know, like, and trust, neighbors, neighborhoods that they grew up in.
• 7:02
  SPEAKER_00: And so it's not always that everyone wants to live in the shore.
• 7:07
  SPEAKER_00: Not everyone, and not everyone um feels comfortable there.
• 7:11
  SPEAKER_00: The the other side of it too that I just want to mention is a lot of times people will call me and they'll say, I want to buy a four-plex in Belmont Shore.
• 7:20
  SPEAKER_00: And I'll say, okay, great.
• 7:22
  SPEAKER_00: Why do you want to go there?
• 7:23
  SPEAKER_00: Well, I think it appreciates higher.
• 7:26
  SPEAKER_00: When it comes to appreciation, if if the market goes up by say three or four percent, the entire market goes up by three or four percent.
• 7:35
  SPEAKER_00: So it's not necessarily that the shore is increasing higher.
• 7:39
  SPEAKER_00: So just kind of want to put that out there as well.
• 7:41
  SPEAKER_00: And so um, shout out to to Cody Chartnell in our office.
• 7:47
  SPEAKER_00: He currently has four units on Granada Avenue.
• 7:51
  SPEAKER_00: And those four units, we did a little bit of research.
• 7:54
  SPEAKER_00: He just put it on the market for a million two hundred and ninety-nine thousand.
• 7:58
  SPEAKER_00: Now they're all studios.
• 8:00
  SPEAKER_00: And I said, Cody, is that the lowest fourplex property uh ever?
• 8:05
  SPEAKER_00: Or not ever in the last couple of years?
• 8:07
  SPEAKER_00: So he did some research and he went back and he said, Hey, his new listing is the lowest price fourplex in the last five years.
• 8:17
  SPEAKER_00: Uh, what's the catch?
• 8:19
  SPEAKER_00: Well, the catch is um they're all studios and there's no parking.
• 8:23
  SPEAKER_00: Um, is that the end of the world?
• 8:24
  SPEAKER_00: Is parking the end of the not having parking the end of the world?
• 8:28
  SPEAKER_00: No.
• 8:28
  SPEAKER_00: No, it's not a problem.
• 8:30
  SPEAKER_00: People still want to live there, people are still going to pay a good amount.
• 8:32
  SPEAKER_00: And so if anyone's in the market and interested in maybe getting into the market, sometimes what people think, and and I think it's a good strategy, if you end up getting um a property in this type of area, and you know, you got the bay where you could swim, and there's lots of boats and kayaks and people in Duffy boats, you have the ocean.
• 8:51
  SPEAKER_00: Because the the location is one of the best in Long Beach, people look at a forplex and they'll and they'll say, you know what?
• 8:57
  SPEAKER_00: If I keep one of the units as an Airbnb, which the city will allow, um, you know, they'll put pull the permit, they'll use it for Airbnb.
• 9:04
  SPEAKER_00: Then they'll say, you know what, in the summer, I'll keep a week or two open for family to come visit.
• 9:09
  SPEAKER_00: And so that gives this added bonus of utility, which makes sense.
• 9:15
  SPEAKER_00: And so maybe someone, you know, I had a client say, Hey, I travel back and forth to Dallas for work, and I would love to come here and spend some time here in the summer.
• 9:23
  SPEAKER_00: And when I'm not here, I'll run Airbnb out of the unit that I was utilizing, which is a great idea.
• 9:27
  SPEAKER_00: So that's just another option.
• 9:29
  SPEAKER_00: You could do Airbnb throughout all of Long Beach, but I think from a desirability perspective and terms of being able to charge more per night, you're definitely going to get that in the shore.
• 9:40
  SPEAKER_00: So there you have it.
• 9:41
  SPEAKER_00: Make sure to like, comment, and subscribe.
• 9:43
  SPEAKER_00: If you guys have a question or if you want me to cover a specific neighborhood, we have over 75 neighborhoods in Long Beach.
• 9:50
  SPEAKER_00: Okay, so there is a lot.
• 9:52
  SPEAKER_00: I mean, yeah, some of the well-known ones, Alamitos Beach, Bigsby Knolls, Rose Park, Wrigley, Polly High, Downtown, the West Side, East Long Beach, Cambodia Town.
• 10:01
  SPEAKER_00: I mean, they go on and on.
• 10:03
  SPEAKER_00: Drake Park, Wilmore.
• 10:05
  SPEAKER_00: I mean, they go on and on.
• 10:07
  SPEAKER_00: So we have a lot.
• 10:08
  SPEAKER_00: And if you if there is a neighborhood that you guys want me to cover, send me a message, comment below.
• 10:13
  SPEAKER_00: Thank you guys for tuning in.