PROPERTY TYPES IN LONG BEACH ISLAND, NJ
Duplexes on LBI
LBI Real Estate Duplexes on Long Beach Island
Duplexes on Long Beach Island offer unique opportunities in the LBI real estate market, whether for investment, rental income, or future development into side-by-side townhomes. A typical LBI duplex consists of two separate units on the same property, each with its own entrance, kitchen, bedrooms, bathroom, and living space—though some properties may have three or even four units.
Duplexes often generate more rental income than single-family homes or condominiums while providing a more affordable entry point into the LBI real estate market. Many buyers choose to live in one unit while renting out the other, allowing them to enjoy summers on Long Beach Island while still generating income.
Buying a Duplex or Multi Family Home in the LBI, NJ Real Estate Market
Buying a duplex in the LBI real estate market requires a careful and thorough investigation of not only the current market but also the specific property you intend to buy. Given the time period of construction, buyers should look for common problems with 50 year old Long Beach Island home such as flood elevation, termite damage, siding choices and rot. Duplexes are found on both the oceanside and bayside areas of LBI. Duplexes which are located on the bayside areas of LBI may have been subjected to flooding during Hurricane Sandy. Therefore, buyers should look into the cost of flood insurance and ensure that all damage was property repaired. Many duplexes on the oceanside and ocean block areas were sparred major damage from Hurricane Sandy but it is still wise to check the elevation and the damage from the storm.
Like any real estate purchase, location is a key factor in the decision. Duplexes found close to the beach will offer excellent rental rates and are very popular with summer tenants. These homes can literally pay for themselves with a 20% down payment if they are purchased for the right price and in the right location. Duplexes also offer the option to be converted into condos or torn down to build new side by side townhomes.
LBI Duplex Sales
Pictured here are two common duplexes in the LBI real estate market.
Both of these examples are two family "up and down" style homes with excellent oceanside locations. While both homes were built in the same time frame (1960's) both have had extensive renovations completed. 101 E Sailboat took this renovation a step further and elevated the home high on pilings. this created parking below the home and gave the front decks a nice view of the water.
Both homes have an excellent rental history thanks to their condition and their location.
While these duplexes epitomize the sales market for multi family homes on Long Beach Island, the sales range for a duplex can be as low as $400,000 and as high as $2,000,000. The difference in price will be primarily driven by location and overall condition.
LBI Duplex Mortgages & Financing
Duplexes on Long Beach Island New Jersey can offer an excellent return on their investment and can often create a positive return with a minimal down payment. Most duplex properties on LBI NJ were built during the 1960's and therefore there are very few variations when it comes to the style of a duplex. Due to their special zoning, this classification of property allows for new "side-by-side" town homes to be built on the lot creating another exciting opportunity for investment or co-ownership.
It is important to have a clear understanding of the lending requirements for duplexes. Since banks view them as investments, many banks will require a minimum of 25% down and may require a non conventional loan (usually an investment loan). Some banks will offer financing at 20% but it is best to speak with a lender to understand the full lending picture. In general:
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Due to their classification, multi-family lending is handled differently than normal residential transactions. Therefore, in most cases, a 25% down payment is needed as they are considered "investment properties" rather than vacation properties.
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Duplex or multi-family homes on Long Beach Island can legally be converted to condos allowing for them to be purchased by separate parties.
The LBI NJ real estate market offers those considering Duplexes on Long Beach Island New Jersey many options. If you are considering buying in the LBI real estate market, please contact me and I will be happy to discuss the area and the LBI NJ real estate market with you. You can search Long Beach Island real estate or contact me, Nathan Colmer anytime about Duplexes on Long Beach Island New Jersey.
Investing in Duplexes on Long Beach Island:
Rental Income or New Construction
There are two principal ways to invest in a duplex in the LBI NJ real estate market. The first is to buy as a rental investment and the second is to buy as a tear down to build new side by side townhomes on spec.
Buying a duplex as a rental investment on Long Beach Island can generate a positive cash flow under the right circumstances and in the right location. Generally speaking, rental investment duplexes should only be purchased on the oceanside or ocean block locations as these areas will rent at a higher rate and with more frequency than a duplexes rental on the bayside. A duplex located "mid block" between Long Beach Blvd and the Oceanblock areas will typically be the best candidates as the purchase price will be low enough to off set the rental income.
LBI duplex have a unique advantage in that they are zoned "multi-family" and will allow for construction of new side by side townhomes (assuming the lot size is large enough to support such a home). These side by side homes will usually be between 1,500 and 2,000 sq. feet and can be sold as condos for a tidy profit. These new homes will offer the amenities and layout found in other new construction for sale in the LBI real estate market but at a much more affordable price point.
Duplexes offer investors in the LBI real estate market excellent options for long term cash flow or for short term flipping. Like any investment, there are market risks that cannot be anticipated however if a home is purchased in the right location and for the right price, the LBI real estate market has proven time and time again to be a safe investment.
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Most duplexes can be turned into condominiums with a rather simple process. This can be a great way for two friends or family members to share the cost of an LBI purchase while still retaining their own individual ownership of a home on Long Beach Island.