Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

LBI NJ Real Estate

Nathan Colmer | The Van Dyk Group

C: 609.290.4293 | O: 609.492.1511

LBI Rental Investment

One of the advantages of buying a home in the LBI real estate market is the consistent interest in summer rentals on Long Beach Island. The ability to rent a home not only keeps the LBI real estate market stable, especially in times of major economic trouble as we saw in 2008, rentals also provide an interesting investment opportunity. LBI rental investment properties offer the ability to purchase a home and generate immediate cash flow. With such a strong rental market, it is not uncommon to see the entire cost of ownership covered by the rental income or a profit generated.

 

 

LBI Rental Investment | LBI Real Estate Rentals | Long Beach Island Real Estate Rental Investments

Investment in the Long Beach Island Real Estate Market

 

LBI Rental Investment | LBI Real Estate Rentals | Long Beach Island Real Estate Rental Investments

The activities and attractions that draw buyers the LBI real estate market are often the same activities and attractions that will draw perspective tenants. Keeping in mind the right location for your LBI real estate investment will go a long way towards ensuring full occupancy and long-term appreciation of the asset. Many homes on Long Beach Island serve as both vacation properties and rental investments so when buying an investment property in the Long Beach Island real estate market, you can typically have a good idea of what kind of income for a property will generate. This makes it easy to dissect the expenses and determine if the investment is secure.

LBI Rental Investment | LBI Real Estate Rentals | Long Beach Island Real Estate Rental Investments

LBI Rental Investment Properties

Like many seasonal areas, Long Beach Island has some distinct trends throughout the year. Long Beach Island experiences a certain activity during the busy summer months of late June through early September which is flanked by the shoulder seasons of spring and fall. Winter sees little to no interest in the summer rental market on Long Beach Island. With such a small window of opportunity, it is important to understand the market and make sure the rental property is the best among its competition and remains a profitable investment. There are three ways to help accomplish this goal. They are:

  • Purchase a home in an attractive location
  • Keep the property’s appearance top-notch
  • Budget for repairs and maintenance throughout the year

While all locations on Long Beach Island will see interest in rental market, there are some ways to maximize perspective tenants interest. Oceanfront, ocean block, and Oceanside properties tend to rent more quickly than their bayside counterparts. Homes in Beach Haven or in close proximity to local attractions will also see increased activity.

Keeping property looking neat and clean is perhaps the most essential step in a successful LBI real estate rental investment. An investor should remember that there LBI home is not the dumping ground for old furniture. Rather it must be furnished and decorated to attract the proper clientele. This will increase the weekly rates and should the property more profitable.

A summer rental property on Long Beach Island is a business and therefore it is important to budget for annual expenses. As I mentioned above, keep the property looking neat and clean is very important and it is therefore prudent to allocate some funds towards keeping the property looking at its best. Budgeted allowances should also include servicing the air conditioning systems, cleanings and utility bills.

 

 

 

Economics of Summer Rental Investments in the LBI NJ Real Estate Market

While every rental house will be unique in the cost to buy and to own I have enclosed an example of a simple LBI rental investment property. I can run specific numbers for any house on LBI to give you an idea of the detailed cost to own, rental potential and gross profit or loss on the LBI rental investment.

LBI Rental Investment | LBI Real Estate Rentals | Long Beach Island Real Estate Rental Investments

Purchase Price: $525,000

Annual Rental Income Potential: $40,000

Annual Mortgage Payment: $20,000

Annual Ownership Costs: $15,000

Total Gross Pre-Tax Profit: $5,000

 

LBI Rental Investment | LBI Real Estate Rentals | Long Beach Island Real Estate Rental Investments

Building A New House As A Rental Investment on Long Beach Island

One of the most profitable rental investments in the Long Beach Island real estate market is to build a new home and rent it out. This can have a double gain as a new home should have immediate equity in the amount of roughly 20%-30% and the rental rates will be significantly higher for the new house. This can create a very lucrative option for those looking to invest in the LBI real estate market.

 

 

 

Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

Real Estate Tip

Remember that rental income is taxed and must be declared. It is important to budget for this when planning for your expenses.

 

LBI Rental Investment | LBI Real Estate Rentals | Long Beach Island Real Estate Rental Investments

Read More About LBI Real Estate Rental Investments

 

LBI Real Estate Rental Homeowner Information

Legal, Tax, and Insurance Information for Long Beach Island Rental Homeowners Long Beach Island Real Estate The LBI real estate market has been experiencing a strong period of positive growth. The aftermath of Hurricane Sandy has created an environment in which many homes on Long Beach Island have been either renovated or rebuilt. The overall... Read More

 

LBI Rental Investment Properties

Buying an Investment Property in the LBI Real Estate Market Long Beach Island Real Estate One of the advantages of buying a home in the LBI real estate market is the consistent interest in summer rentals on Long Beach Island. The ability to rent a home not only keeps the LBI real estate market stable... Read More

 

How to Handle Rental Damage in the LBI Real Estate Market

Tips for Tenants and Rental Homeowners on Long Beach Island Long Beach Island Real Estate Rentals The rental market on Long Beach Island has been a busy industry for decades. It is no exaggeration to claim that the entire economy of Long Beach Island centers on summer rental season. Tourism is the backbone of Long... Read More

 

Preparing to Sell Your Rental Property on Long Beach Island NJ

Selling a Rental Property in the LBI Real Estate Market on Long Beach Island New Jersey Long Beach Island NJ and the LBI Real Estate Market Long Beach Island NJ is famous for its white sandy beaches, family friendly atmosphere and exciting summer activities. Essential to these summer activities, and the Long Beach Island economy... Read More

 

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Your LBI Beach House is a Phone Call Away! Call Nathan Colmer 609-290-4293

Nathan Colmer

609.290.4293

ncolmer@vandykgroup.com

The Van Dyk Group

12800 Long Beach Blvd

Beach Haven Terrace NJ 08008

609.492.1511