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List Price: $1,199,999 | 4 Units | Long Beach, CA 90805
For real estate investors looking for multi-unit opportunities in Southern California, 219 E Artesia Blvd in Long Beach presents a promising value-add opportunity. This 4-unit property offers immediate income with substantial upside in rents, making it attractive for both seasoned investors and those entering the multifamily space for the first time.
Over the past decade, Long Beach’s real estate market has demonstrated notable appreciation. According to NeighborhoodScout, the city experienced a cumulative appreciation rate of 104% over the last ten years, translating to an average annual increase of 7.39% . This positions Long Beach in the top 40% of appreciating markets nationwide.
Specifically focusing on multifamily properties, such as four-plexes, the market has seen a cumulative rental price increase of 22.3% over the past three years . This growth underscores the strong demand and limited supply in the multifamily sector.
Looking ahead, while precise forecasts can be challenging due to various economic factors, the historical data suggests a continued positive trend. If the average annual appreciation rate of 7.39% persists, investors could anticipate a cumulative increase of approximately 69% over the next nine years. However, it’s essential to consider potential market fluctuations and economic conditions that could influence this trajectory.
In summary, Long Beach’s real estate market, particularly in the multifamily segment, has shown robust growth over the past decade. While future appreciation rates may vary, the city’s strong fundamentals and historical performance indicate a promising outlook for investors considering long-term commitments in the area.
🔑 Property Overview
- Units: 4 (2 currently leased below market)
- Current Monthly Rents:
- Unit 1: $2,900
- Unit 2: $2,900
- Unit 3: $1,662
- Unit 4: $1,662
- Total Current Rent: $9,124/month
- Pro Forma Monthly Rents:
- Unit 1: $3,500
- Unit 2: $3,500
- Unit 3: $2,500
- Unit 4: $2,500
- Total Pro Forma Rent: $12,000/month
- Water Bill Budget: $700/month
With two units already collecting near-market rents and the others positioned for a future increase, this property has strong cash flow potential after tenant turnover or renovations.
💸 Purchase & Financing Details
- Purchase Price: $1,199,999
- Down Payment (10%): $119,999.90
- Estimated Closing Costs: $48,676.10
- Total Cash to Close: $168,676
- Loan Amount: $1,079,999 (Conventional Financing)
This financing scenario assumes a 10% down payment, common for owner-occupied 2–4 unit properties using conventional loans. An investor could also explore 15%–25% down options for non-owner-occupied financing.
📊 Cash Flow Breakdown (As-Is)
Monthly Gross Income: $9,124
Estimated Expenses:
- Principal & Interest (6.25% @ $1,079,999 loan): ~$6,650/month
- Property Taxes (1.25% est.): ~$1,250/month
- Insurance: ~$150/month
- Water: $700/month
- Misc/Repairs Reserves: ~$300/month
- Total Expenses: ~$9,050/month
Net Operating Cash Flow (As-Is): ~$74/month
At current rents, the property roughly breaks even after mortgage and operating expenses—though with only $74/month in surplus, there is minimal margin. However, this picture shifts significantly when rents are adjusted to market levels.
📈 Cash Flow Breakdown (Pro Forma Rents)
Monthly Gross Income: $12,000
Estimated Expenses (same): ~$9,050/month
Net Operating Cash Flow (Pro Forma): ~$2,950/month
With full market rents, the property could generate nearly $3,000/month in positive cash flow, equating to over $35,000/year in net income, all while building equity in an appreciating Long Beach market.
💼 Investment Outlook
Long Beach remains a strong rental market with high demand for well-maintained multifamily units. 219 E Artesia Blvd is located near major commuting routes and public transportation, enhancing tenant appeal. Investors can benefit from:
- Immediate cash flow potential with minimal capital investment
- Forced appreciation via rental increases
- Owner-occupancy potential for FHA/Conventional financing with 3.5%–10% down
To forecast the year-over-year property value over 9 years for a 4-unit property in Long Beach with a purchase price of $1,199,999, we’ll apply the historical average appreciation rate of 7.39% annually.
📈 Forecasted Value Over 9 Years (7.39% Annual Appreciation)
We use the compound growth formula: Future Value=Purchase Price×(1+Appreciation Rate)n\text{Future Value} = \text{Purchase Price} \times (1 + \text{Appreciation Rate})^nFuture Value=Purchase Price×(1+Appreciation Rate)n
Where:
- Purchase Price = $1,199,999
- Appreciation Rate = 7.39% = 0.0739
- nnn = number of years
| Year | Forecasted Value |
|---|---|
| 0 | $1,199,999 |
| 1 | $1,288,678 |
| 2 | $1,383,007 |
| 3 | $1,483,379 |
| 4 | $1,590,214 |
| 5 | $1,703,958 |
| 6 | $1,825,090 |
| 7 | $1,954,129 |
| 8 | $2,091,627 |
| 9 | $2,238,173 |
📊 Total Appreciation Over 9 Years:
- Increase in Value: $2,238,173 – $1,199,999 = $1,038,174
- Total Return (excluding mortgage paydown & cash flow): ~86.5% appreciation
🏁 Final Thoughts
This 4-unit apartment building at 219 E Artesia Blvd represents a low-barrier entry point into multifamily investing in a desirable Long Beach submarket. With strategic rent adjustments and good financing, it offers both stability and upside for investors focused on long-term wealth building.
Whether you’re house-hacking, expanding your portfolio, or seeking steady cash flow with upside potential—this property is worth a closer look.
David Delgado – NMLS #349079
President/CEO
Main Office (866) 587-6927
Freedom Choice Lending
NMLS #1998153
P.S. If you know any friends, family members, co-workers looking to buy, sell or refinance it would be an honor to help them as well. When you come across anyone please give us a call at 866-587-6927 Thank you! David Delgado