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#76 Long Beach Fourplex Sales JUMPED 70% in 2025 · Own More Doors

• 0:00
  SPEAKER_00: Did you know that in 2025 forplex sales increased by 70%?
• 0:04
  SPEAKER_00: That's right, 70%.
• 0:06
  SPEAKER_00: So today I'm gonna hop in on what happened 2025 multifamily forplexes in the city of Long Beach.
• 0:13
  SPEAKER_00: As you guys know, we're the only firm that's tracking these sales.
• 0:16
  SPEAKER_00: Yes, we track five plus, but today's video is all about fourplexes.
• 0:20
  SPEAKER_00: Just so you know, we have about 2800 forplexes in Long Beach, which out of all the cities, we probably have more forplexes than any other city in Southern California.
• 0:30
  SPEAKER_00: So uh this is great data.
• 0:31
  SPEAKER_00: There's a lot of investors when it comes to fourplexes, and so this is the data that you're gonna love to see.
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  SPEAKER_00: So let's kick it off.
• 0:37
  SPEAKER_00: Why was there a massive increase in forplex sales?
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  SPEAKER_00: Well, I'll tell you this back in 2022, we had 67 forplexes that sold.
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  SPEAKER_00: Then in 2023, 2024, surprisingly, we had the same number of 48.
• 0:49
  SPEAKER_00: So 48 for 2023, 2024.
• 0:52
  SPEAKER_00: Now we had this big increase.
• 0:54
  SPEAKER_00: And what I'm seeing, and what I want you folks to know, is that every buyer out there has been on the sidelines thinking I'm waiting for interest rates to drop.
• 1:03
  SPEAKER_00: That's what they've been waiting for.
• 1:05
  SPEAKER_00: I want interest rates to drop.
• 1:07
  SPEAKER_00: Interest rates never dropped, but investors want to invest.
• 1:10
  SPEAKER_00: They got tired of waiting.
• 1:12
  SPEAKER_00: That's what happened.
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  SPEAKER_00: So it's not that the numbers got better, it's not that the economy changed.
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  SPEAKER_00: In fact, there's new factors that might make the economy worse.
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  SPEAKER_00: But regardless, we had a big increase.
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  SPEAKER_00: So I'm gonna go through some important numbers.
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  SPEAKER_00: And so let's go through the average close price.
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  SPEAKER_00: And here's the most important thing.
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  SPEAKER_00: If I go back to 2022, 2023, 2025, skipping 2024 for now, we're right around 1.4 million.
• 1:38
  SPEAKER_00: So if someone calls me and they they have an average forplex in an average part of Long Beach, we're most likely going to be one a million four hundred thousand.
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  SPEAKER_00: We've been pretty consistent.
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  SPEAKER_00: For some odd reason, in 2024, that dropped down um at about a million two hundred and fifty, okay.
• 1:56
  SPEAKER_00: So in 2024, we had the average sales prices drop.
• 1:59
  SPEAKER_00: Now, again, these are just averages.
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  SPEAKER_00: Sometimes we have higher sales,$3 million forplexes, for instance, that drag that average up.
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  SPEAKER_00: And sometimes we have fourplexes that are down$750,000.
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  SPEAKER_00: There's one that sold in 2025 that was completely burned down.
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  SPEAKER_00: And so that one sold for$750,000.
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  SPEAKER_00: It was also vacant and needed a lot of work.
• 2:19
  SPEAKER_00: And so, yeah, that one's gonna sell.
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  SPEAKER_00: So all of a sudden, that's gonna shift it down.
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  SPEAKER_00: So, all in all, the biggest takeaway is the average sales price has stayed consistently at right about$1.4 million.
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  SPEAKER_00: So, what does that mean for you?
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  SPEAKER_00: If you're a buyer, it gives you a good measurement.
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  SPEAKER_00: 1.4 is the average.
• 2:38
  SPEAKER_00: If you're able to get something below average, that might be a good idea.
• 2:42
  SPEAKER_00: Now, for some people, they might say, Well, I have a four-unit building in Belmont Shore.
• 2:47
  SPEAKER_00: I'll tell you that in Belmont Shore, the average price is right around$1,795,000.
• 2:53
  SPEAKER_00: Okay, so to be closer to the water, to be uh closer to shops and that kind of stuff, uh, to be in our best preferred area, you're gonna be paying a little bit more.
• 3:02
  SPEAKER_00: Um, do we have?
• 3:04
  SPEAKER_00: I sold a fourplex in Los Altos for over$2 million.
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  SPEAKER_00: And so it just depends.
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  SPEAKER_00: It is gonna be um a factor of where your property is located.
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  SPEAKER_00: But all in all, average in Long Beach has been pretty consistent, 1.4.
• 3:16
  SPEAKER_00: The reason why we had a lot more sales is that people got tired of waiting.
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  SPEAKER_00: That's the honest truth.
• 3:21
  SPEAKER_00: People got tired of waiting.
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  SPEAKER_00: Now, if you're a seller, what does this mean?
• 3:25
  SPEAKER_00: If you're a seller and you've been thinking about selling, um the number one question you're gonna ask me is is this a bad time to sell?
• 3:33
  SPEAKER_00: Well, if we had a massive increase of 70% in sales, what do you think?
• 3:37
  SPEAKER_00: It's a great time to sell, right?
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  SPEAKER_00: Means people are transacting, buyers are off the fence.
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  SPEAKER_00: So if you're someone out there who's thinking, well, uh, did values drop?
• 3:46
  SPEAKER_00: No, they haven't.
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  SPEAKER_00: They've actually remained the same from an average um sales price perspective.
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  SPEAKER_00: Okay, so you're fine.
• 3:51
  SPEAKER_00: Well, in fact, they actually went up from 2024.
• 3:54
  SPEAKER_00: But 2024, I'm gonna kind of cancel that year because it was the average was way too low.
• 3:59
  SPEAKER_00: But again, going back to 2022, one four is where we've been at.
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  SPEAKER_00: Another question that we have is average days on market.
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  SPEAKER_00: So someone hires me and says, How long is it gonna take?
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  SPEAKER_00: And this has pretty been pretty consistent.
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  SPEAKER_00: So if I go back to 2022, it took us 55 days on average to put a property into contract, into escrow.
• 4:18
  SPEAKER_00: Okay, the escrow period's different, that's gonna be 30 to 45 days, not that big of a deal.
• 4:23
  SPEAKER_00: 2023, we had 64 days on market, 2024, we had 41 days on market, so we had a nice little dip there.
• 4:29
  SPEAKER_00: They were trading a little faster, even though they were well, the reason why they were trading faster in 2024 was because the average sales price was down.
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  SPEAKER_00: Now, back in 2025, we're at 64 days on market.
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  SPEAKER_00: So it's interesting that we've hit the 64 day mark twice over a three-year span.
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  SPEAKER_00: So um how long is it gonna take?
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  SPEAKER_00: About two months.
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  SPEAKER_00: About two months to get an average fourplex.
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  SPEAKER_00: Now, is it possible that we put a property on the market and we quickly within two weeks get offers?
• 4:57
  SPEAKER_00: Yeah, that does happen.
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  SPEAKER_00: Not always, but all in all, is uh sellers want to know well, what can I sell my property for?
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  SPEAKER_00: How long is it gonna take?
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  SPEAKER_00: Um, and then just just a couple stats.
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  SPEAKER_00: It's not super important because we talked about pricing, but the average price per square foot in 2025 was 409.
• 5:15
  SPEAKER_00: Okay, so$409 um up from 2024 but down from 2023.
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  SPEAKER_00: So I'm not gonna give that too much, too much credit.
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  SPEAKER_00: For now, if you have a fourplex, take the square footage, multiply it by 409.
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  SPEAKER_00: You're gonna have a good idea.
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  SPEAKER_00: Now, if you're in a less desirable area or have super low rents, um you might get a lower price per square foot.
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  SPEAKER_00: So just know that going into it.
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  SPEAKER_00: So a few other things that I want to talk about today.
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  SPEAKER_00: Okay, so a few other averages.
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  SPEAKER_00: So we already know that we sold 82 fourplexes this year.
• 5:47
  SPEAKER_00: And yes, Sage Real Estate continues to dominate the market.
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  SPEAKER_00: We are the market leaders when it comes to fourplexes, and pretty soon we're gonna be market leaders in the five plus as we take on more and more sales.
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  SPEAKER_00: So just a couple important numbers, takeaways for those that care.
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  SPEAKER_00: Again, average sales price 1.39.
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  SPEAKER_00: So call it 1.4.
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  SPEAKER_00: Um the average price per unit, 347,000.
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  SPEAKER_00: Average price per square foot, we've covered that already, 409.
• 6:14
  SPEAKER_00: Um, and the cap rate.
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  SPEAKER_00: Now, the cap rate, I'm gonna give this with you a little bit of grain of salt.
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  SPEAKER_00: Average cap rate's 5.5.
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  SPEAKER_00: The reason why I'm not gonna give that too much credit is a lot of agents do not know how to factor it in.
• 6:27
  SPEAKER_00: A lot of agents do not know how to properly put the operating expenses, and so it pulls this data from the multiple listing service.
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  SPEAKER_00: And I'm saying that that specific data right there, regards to the cap rate, a lot of times it's just not calculated correctly.
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  SPEAKER_00: What we end up having at the forplex level is a lot of residential agents that are really good at selling homes, they just don't know income producing property.
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  SPEAKER_00: So they don't know what a cap rate is, and um they might just pick a number.
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  SPEAKER_00: Sometimes they don't know the expenses that are factored in.
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  SPEAKER_00: Sometimes they put in a mortgage and then really kills the cap rate.
• 6:59
  SPEAKER_00: But for now, you could look at it 5.5 cap rate on a four-plex level.
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  SPEAKER_00: From a gross rent multiplier perspective, we're looking at 13.5.
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  SPEAKER_00: So, what does that mean?
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  SPEAKER_00: That means that we take the income of our property, right?
• 7:13
  SPEAKER_00: So let's just say that your property makes$100,000 a year.
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  SPEAKER_00: Very normal for a fourplex to make that.
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  SPEAKER_00: In fact, some of them make a lot more than that.
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  SPEAKER_00: But let's just say you make 100,000 gross.
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  SPEAKER_00: What this data is telling us that this is market derived data.
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  SPEAKER_00: This is not wands making the sub market-derived data.
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  SPEAKER_00: So we take that 100,000, we multiply it times the multiplier, 13.5.
• 7:33
  SPEAKER_00: Where does that 13.5 come from?
• 7:35
  SPEAKER_00: From every sale that we've analyzed, 82 of them.
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  SPEAKER_00: Okay.
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  SPEAKER_00: And so now we're probably gonna have a value of a million 350,000.
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  SPEAKER_00: So that's our what we call the GRM, really important number.
• 7:45
  SPEAKER_00: Um, I will tell you this.
• 7:48
  SPEAKER_00: Um, in our future videos, so so make sure you guys are tuning in, make sure you're subscribed.
• 7:53
  SPEAKER_00: But in our future videos, I'm gonna start breaking down uh the Rose Park area, Belmont Heights area, uh Los Altos area, North Long Beach, Belmont Shore.
• 8:02
  SPEAKER_00: I'm gonna start going in a little deeper with the fourplexes with these specific communities so that folks who are like, hey, I want to buy in downtown, great.
• 8:09
  SPEAKER_00: I'm gonna I'm gonna be a little more niche into the information.
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  SPEAKER_00: So make sure you guys are tuned in.
• 8:14
  SPEAKER_00: And of course, we're gonna be having another market uh update video coming on the five plus market.
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  SPEAKER_00: The next thing is I want to get into the different segments when it comes into what makes up the 82 sales in the city of Long Beach.
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  SPEAKER_00: And I'll start off with the premium tier.
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  SPEAKER_00: 22%, 22%.
• 8:31
  SPEAKER_00: So this is 18 sales are what we're gonna call premium.
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  SPEAKER_00: So this is the median price of a million eight forty-five.
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  SPEAKER_00: Okay.
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  SPEAKER_00: And so those are ones that are above one six.
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  SPEAKER_00: Uh, we had 18 sales, and those sold for$490,000 a door.
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  SPEAKER_00: So now we're talking uh Bluff Park, Belmont Heights, Belmont Shore, larger.
• 8:53
  SPEAKER_00: We're talking about being on the ocean, peninsula, Naples, these are four plexus that are considered higher end.
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  SPEAKER_00: The market will pay more for them.
• 9:01
  SPEAKER_00: Of course they will.
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  SPEAKER_00: They're gonna pay more from a price per door perspective.
• 9:04
  SPEAKER_00: They're gonna pay more from a uh gross rent multiplier.
• 9:09
  SPEAKER_00: Just so you know, in that in those areas, you're looking at a 15 times gross rent multiplier, right?
• 9:15
  SPEAKER_00: So it's gonna be higher.
• 9:16
  SPEAKER_00: So the higher the multiplier, typically you could assume that you're gonna be in a uh what would be considered a premium uh superior location.
• 9:25
  SPEAKER_00: So now let's go where the majority of the market sold, 46 sales of the 82, that's 56%, somewhere between 1.5 and 1.6.
• 9:34
  SPEAKER_00: That's where the majority of the sales were.
• 9:36
  SPEAKER_00: Of course, that makes sense.
• 9:37
  SPEAKER_00: I mean, that's where the average sales price uh is, and so that's gonna make sense.
• 9:40
  SPEAKER_00: And so the average price per door there was 334,000, 62 days on market.
• 9:46
  SPEAKER_00: Gross rent multiplier is gonna come down from our premium areas down to 12.7.
• 9:51
  SPEAKER_00: Okay.
• 9:52
  SPEAKER_00: Um, and then down at the values the bottom tier, which is not a bad thing, that means you're buying at the bottom of the um kind of you're buying where the properties are much lower.
• 10:02
  SPEAKER_00: We had uh 18 sales there, that's 22%, medium price about a million dollars, and the average price per door was 234,000.
• 10:11
  SPEAKER_00: And so as you could see, we have a good bracket of call it mid-tier transactions right in the middle, making up 56%.
• 10:20
  SPEAKER_00: And we have the premium tier and we have the value tier down at the bottom.
• 10:23
  SPEAKER_00: And so you could see how across all markets some of the numbers are shifting, okay?
• 10:28
  SPEAKER_00: So there you have it, folks.
• 10:29
  SPEAKER_00: Um, if you're a buyer, is this a good time to answer?
• 10:32
  SPEAKER_00: Yeah.
• 10:33
  SPEAKER_00: Because the fact that we have more increase in sales tells you that other people like you in your situation are deciding to buy fourplexes today.
• 10:40
  SPEAKER_00: If you're a seller, this should be terrific news.
• 10:43
  SPEAKER_00: Values remain the same overall, except sales are up.
• 10:48
  SPEAKER_00: Okay, so that's a plus.
• 10:49
  SPEAKER_00: And so if you're someone who is sitting on a property, you're not sure what you want to do with it, reach out to me.
• 10:55
  SPEAKER_00: I would love to give you a valuation on that specific property.
• 10:58
  SPEAKER_00: Um, I will tell you this, and I'm gonna end with this.
• 11:00
  SPEAKER_00: If you're someone who has a four-unit building, there is, and if you're still playing the scaling game, you couldn't have picked a better part.
• 11:11
  SPEAKER_00: This is the best time to sell that four unit, trade into an eight or a 10.
• 11:15
  SPEAKER_00: Um, I'm gonna be doing a second video and I'll tell you guys why, but I've done other videos where I'm showing you exactly what I'm doing with my investments.
• 11:21
  SPEAKER_00: I sold a triplex, I bought an eight-unit building, I sold a four-unit building, and I bought a 10-unit building.
• 11:27
  SPEAKER_00: This is the best time to sell your fourplex, your triplex, your duplex, your investment condo, your investment house.
• 11:35
  SPEAKER_00: It's the perfect time to sell at the top.
• 11:37
  SPEAKER_00: And I'm gonna show you folks how we're gonna buy at the bottom in the larger units.
• 11:41
  SPEAKER_00: And so make sure you guys tune in our future videos.
• 11:44
  SPEAKER_00: We're gonna keep bringing the content out to you.
• 11:47
  SPEAKER_00: Thank you guys for the support.
• 11:48
  SPEAKER_00: I appreciate it so much.
• 11:49
  SPEAKER_00: Make sure to like, comment, and subscribe until next time.