LBI Rental Rates Are Rising Making LBI Rental Properties Profitable

LBI Rental Rates Are Rising Making LBI Rental Properties Profitable

Long Beach Island Real Estate Rental Rates are Rising Making an LBI Rental Investment Home More Profitable

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

One of the most potent forces in the Long Beach Island economy is the summer rental market. Simply put, the LBI relies on summer rental tourism to fuel the stores, restaurants, and the LBI real estate market. The LBI rental market has increased significantly in the past two years, and weekly rental rates have also increased. Rental homes on Long Beach Island are in high demand, and this rent increase has made the prospect of owning an LBI rental property even more profitable.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

LBI Rental Rates Are Rising Making LBI Rental Properties Profitable

Buying a rental investment property in the LBI real estate market can be an excellent source of income and help to balance an investment portfolio. The increase in summer rental income coupled with historically low-interest rates has helped make a rental home on Long Beach Island better than ever. It is impossible to generalize rental income on LBI since it varies significantly from house to house and location to location. Still, investors have found returns in excess of 10%-12% on their money under the right conditions. One of the best ways to beat the LBI real estate market is to purchase a tear-down and build a new home. This can prove to be an outstanding investment since it generates an immediate equity position, usually around 20%, and establishes a much lower investment, thus significantly increasing the rental returns. To give some very rough numbers, a new home on the oceanside designed to be a rental can gross around $20,000/week for prime weeks. This can lead to a gross rental income of about $250,000-$300,000/season. A home such as this should cost around $2,100,000-$2,200,000 to buy and build so the returns can be outstanding!

Long Beach Island Real Estate Rental Rates are Rising Making an LBI Rental Investment Home More Profitable

Owning an LBI rental property is not for everyone, but the facts are that a rental investment on Long Beach Island can prove to be a stable and reliable source of income. Any investment should be discussed with your financial planner and/or advisor. Still, we are happy to help you understand the rental process and the LBI real estate market if the investment is suitable for you. If you have any questions about buyingselling or investing in the LBI real estate market, please do not hesitate to contact me.

By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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