If you have $300,000 to invest and want a rental in Long Beach, your sweet spot is a duplex or triplex between $800,000 and $1,000,000, with total rents around $4,000 to $5,500 a month. That’s enough cash to put 25% to 35% down, cover closing costs, and buy down your rate.
It’s also a good time to be the buyer. Long Beach multi-units are in a buyer’s market this fall, and sellers are paying for things they wouldn’t have paid for two years ago.
Below is what’s actually for sale in that range, the full monthly numbers on two deals, how much a rate buydown helps, and what you earn once you count principal paydown and depreciation.
The short answer
| $800K duplex | $1M duplex | |
|---|---|---|
| Total rent | $4,400 | $5,500 |
| Down payment from your $300K | $280,000 (35%) | $275,000 (27.5%) |
| Closing costs | about $20,000 | about $25,000 |
| Rate after a seller-paid buydown | about 7.375% | about 7.375% |
| Monthly cash flow | about –$851 | about –$1,512 |
| Principal paid down, year 1 | about $4,912 | about $6,848 |
| Depreciation deduction, per year | about $10,182 | about $12,727 |
At today’s rates, neither one fully cash flows on $300K. The $800K duplex comes close, and once you count principal paydown and modest appreciation, it earns a positive return in year one. The details are below.
What $300K buys in Long Beach right now
With $300,000, your ceiling is about $1.09 million (25% down plus about 2.5% in closing costs). Most of my investor clients stay between $800,000 and $1,000,000 so they can put more down and keep reserves.
These are from my October North Long Beach multi-unit report (CRMLS, October 5). Rents are what the seller’s agent listed, not verified.
| Address (90805) | Price | Units | Listed rent | Note |
|---|---|---|---|---|
| 5947 John Ave | $799,999 | 2 (detached) | $4,000/mo | Coming soon |
| 5656 Lime Ave | $859,000 | 3 | about $5,185/mo | Best rent-to-price in range |
| 5940 Gundry Ave | $899,000 | 2 | Not listed | 63 days on market |
| 6140 Orange Ave | $1,020,000 | 3 | about $6,228/mo | Cut $130,000, 605 days |
| 5174 Linden Ave | $1,088,800 | 4 | about $5,450/mo | Top of your range |
Two buildings in this range just went into escrow: a triplex at 180 E 55th St listed at $750,000 and a fourplex at 92 E Louise St listed at $1,100,000. Smaller, fairly priced buildings are what’s selling.
Why it’s a buyer’s market, and how to use it
Citywide, Long Beach multi-units hit 6.63 months of inventory in September, past the 6-month line into buyer’s territory. I broke that down in is Long Beach a buyer’s or seller’s market for multi-units. In North Long Beach, 8 of 19 sellers had cut their price, and 2-to-4-unit buildings had been listed a median of 75 days.
That gives you three things to negotiate:
- Price. Buildings listed 60+ days are where the room is.
- Seller credits for a rate buydown. This is usually worth more to your monthly cash flow than the same dollars off the price.
- Repairs and inspection time. Ask for longer contingencies to verify leases and rents.
The rate buydown: how much it actually helps
Investment loans on 2 to 4 units price higher than a primary home. Freddie Mac’s weekly survey had the 30-year fixed at 7.40% on October 8, and investment duplex quotes are running near 7.875%.
Each discount point (1% of the loan) typically lowers the rate about 0.25%, though it varies by lender. Two points take you from about 7.875% to about 7.375%.
Here’s the key: on an investment property, Fannie Mae allows seller credits up to 2% of the price, and they can pay for a rate buydown. On an $800,000 duplex, that’s up to $16,000. Two points on a $520,000 loan cost about $10,400, so the seller can cover the whole buydown.
| $800K duplex, $520K loan | Rate | Monthly P&I |
|---|---|---|
| No buydown | 7.875% | about $3,770 |
| 2 points, seller-paid | 7.375% | about $3,592 |
| Monthly savings | about $178 |
On the $1M duplex with a $725,000 loan, the same buydown saves about $250 a month. That’s $2,100 to $3,000 a year for 30 years, paid by the seller. In a buyer’s market, ask for it on every offer. I covered why sellers are saying yes to this in what 7%+ rates mean for buyers this fall.
Deal 1: $800K duplex, $4,400 rent
Two 2-bedroom units at $2,200 each. You put $280,000 down (35%), use about $20,000 for closing, and the seller pays for the buydown.
| Monthly | Amount |
|---|---|
| Gross rent (2 units) | $4,400 |
| Vacancy (5%) | –$220 |
| Repairs and maintenance (6%) | –$264 |
| Property tax (about 1.2%) | –$800 |
| Insurance | –$225 |
| Water, sewer and trash (owner-paid) | –$150 |
| Net operating income | $2,741 |
| Mortgage P&I ($520K at 7.375%) | –$3,592 |
| Monthly cash flow | about –$851 |
That’s a 4.1% cap rate. To fully break even at 7.375%, you’d need about 50% down. That’s the honest picture at today’s rates.
Deal 2: $1M duplex, $5,500 rent
Two larger units at $2,750 each. You put $275,000 down (27.5%) and use about $25,000 for closing.
| Monthly | Amount |
|---|---|
| Gross rent (2 units) | $5,500 |
| Vacancy (5%) | –$275 |
| Repairs and maintenance (6%) | –$330 |
| Property tax (about 1.2%) | –$1,000 |
| Insurance | –$250 |
| Water, sewer and trash | –$150 |
| Net operating income | $3,495 |
| Mortgage P&I ($725K at 7.375%) | –$5,007 |
| Monthly cash flow | about –$1,512 |
More rent, but more debt. With the same $300,000, the $800K duplex runs about $660 a month better. The lesson: at this budget, rent-to-price matters more than total rent. A triplex like 5656 Lime at $859,000 with about $5,185 in rent (0.60% rent-to-price) beats both duplexes on paper.
Why a duplex handles vacancy better
When a single-family rental goes vacant, your income goes to zero. When one side of a duplex goes vacant, you’re still collecting half.
| One month vacant | Rent you still collect |
|---|---|
| $800K single-family house renting $3,700 | $0 |
| $800K duplex renting $4,400 (one unit empty) | $2,200 |
Your average vacancy rate per unit may be similar, but the duplex never puts you at $0. That makes the cash flow steadier and the reserves you need smaller. It’s one reason I like duplexes for a first investment property in LA County. I cover what else to check in how to evaluate a multi-unit property in Long Beach as a new investor.
The return you don’t see in cash flow
Cash flow is only one part of what a rental earns. Here’s year one on Deal 1:
| Year 1 ($800K duplex, $300K invested) | Amount |
|---|---|
| Cash flow | –$10,212 |
| Principal paydown (equity your tenants built) | +$4,912 |
| Appreciation at 3% | +$24,000 |
| Total year-1 return | about +$18,700 (6.2% on $300K) |
Without appreciation, year one is about –$5,300. With it, you earn about 6% on your cash. So you’re still betting on appreciation, but a duplex needs a lot less of it to come out ahead than a single-family rental does.
Depreciation: real, but know the rule
The IRS lets you depreciate the building (not the land) over 27.5 years (IRS Publication 527). Long Beach land is valuable, so I’m assuming the building is about 35% of the price. On the $800K duplex, that’s about $10,182 a year.
That deduction turns this property into a paper loss of about $15,500 in year one, even though the true out-of-pocket is smaller. Here’s what most high earners miss: rental losses are passive. If your household income is over $150,000, you generally can’t use them against your W-2 income (IRS Publication 925). They carry forward. They shelter future rental income, and any unused losses are released when you sell. Talk to your CPA about whether a cost segregation study or real estate professional status changes that for you.
The 5-year view
Same $860K triplex at 5656 Lime, 30% down, bought down to 7.375%. Rents and expenses grow 3% a year, and you sell after five years with 6% selling costs.
| Appreciation per year | Sale price in year 5 | 5-year net profit |
|---|---|---|
| 0% | $860,000 | about –$79,000 |
| 3% | about $997,000 | about +$49,000 |
| 5% | about $1,098,000 | about +$144,000 |
Cash flow improves from about –$880 a month in year one to about –$430 by year five as rents rise. Principal paydown adds about $33,000 over the five years. And if rates drop to around 6.4%, refinancing the $602,000 loan saves about $390 a month on top of that.
The read: this is a long-hold investment. It works if you can carry a few hundred dollars a month for a few years and hold 5+ years. It doesn’t work if you need it to pay you from day one.
Three ways to make it cash flow more
- Buy the lower price with the higher rent. Target rent-to-price of 0.55% or better. That usually means a triplex or a duplex with larger units, not the nicest building.
- Ask for credits and a buydown on every offer. In this market, a 2% seller credit is a normal request.
- Add an ADU later. State law lets an existing multi-unit lot add detached ADUs, and Long Beach lots often have room. A $250,000 one-bedroom ADU renting for about $2,300 can turn a negative building positive. See how many ADUs you can add to a multi-unit property in Orange County and LA and the city’s ADU program page.
Also check the rent rules. Most older Long Beach buildings fall under California’s statewide rent cap, but new ADUs are often exempt. I explain both in is a new ADU exempt from rent control.
FAQ
What can I buy with $300,000 for an investment property in Long Beach?
A duplex or triplex from about $800,000 to $1,000,000, renting for about $4,000 to $5,500 a month. Your maximum is about $1.09 million at 25% down after closing costs.
Do Long Beach duplexes cash flow at today’s rates?
Not fully at 25% to 35% down. At 7.375%, an $800K duplex renting for $4,400 runs about –$850 a month. Breaking even takes about 50% down or a rent-to-price ratio near 0.7%.
Can the seller pay for my rate buydown on an investment property?
Yes. Fannie Mae allows seller credits up to 2% of the price on investment properties, and they can go toward discount points.
How much does a rate buydown save on a duplex?
Two points typically lower the rate about 0.5%. On a $520,000 loan, that’s about $178 a month.
Can I use depreciation to lower my W-2 taxes?
Usually not if your household income is over $150,000. Rental losses are passive and carry forward to offset future rental income or gains when you sell. Ask your CPA.
Is Long Beach a buyer’s market for duplexes right now?
Yes. Long Beach multi-units were at 6.63 months of inventory in September 2026, and many North Long Beach sellers have cut their price.
The bottom line
$300,000 buys you an $800,000 to $1,000,000 duplex or triplex in Long Beach. At today’s rates, plan for a small monthly shortfall, offset by principal paydown, depreciation and appreciation. Get a seller-paid buydown on every offer, lean toward the building with the best rent-to-price, and plan to hold at least five years. The buyers who are getting the best deals this fall are the ones writing offers on buildings that have been sitting.
👉 Book a buyer ADU consult call to go through your options with Dylan
Prefer to talk now? Call Dylan Serna, ADU Realtor at 714-860-2868.
Dylan Serna | The ADU Realtor | eXp Realty | DRE #02217359
Related Reading
- Why Long Beach multi-units in desirable neighborhoods sell above their income value
- How to sell a Long Beach multi-unit with uncooperative tenants
This post is general information, not financial, lending or tax advice. Payments assume a 30-year fixed investment loan at 7.875% before buydown and 7.375% after two points; your rate will differ. Expenses are estimates. Listings and rents come from CRMLS data pulled October 5, 2026, as listed by sellers’ agents, and change constantly. Depreciation assumes the building is 35% of the price; your assessor ratio and tax situation will differ. Talk to a licensed lender and your CPA before you buy.
