Investing in Long Beach Island
real estate, by the numbers
Rental income, ownership costs, appreciation and long term returns for any LBI investment property, modeled before you buy.
Is Long Beach Island a good real estate investment?
For most buyers, an LBI investment property is an appreciation play first, with rental income helping offset the cost of ownership. Home values across the Island have more than doubled since COVID, but that does not mean every property performs the same way.
With 20% down, most homes under $2M still run a yearly shortfall after the mortgage. Larger homes around $2.5M and above, particularly those with five bedrooms, a pool and strong beach access, have a better chance of approaching break even or producing positive cash flow. Paying cash changes the equation considerably.
On the rental side, the majority of annual income is typically earned during the ten peak weeks from late June through Labor Day.
Updated by The Guarino Team at Freeman & Company
LBI home values have more than doubled since COVID.
Nearly half of LBI purchases since 2023 have been all cash.
Late June through Labor Day, when most annual rental income is earned.
The amount a pool can add to resale value in many cases, along with roughly 15% to 40% more rental income depending on the property.
Guarino Team analysis of Bright MLS and LBI rental data, 2026.
What LBI investment property returns actually look like
How an investment property on LBI performs depends heavily on the property, purchase price, financing and intended use. Here is how we typically frame the market for clients.
Most properties in this range run cash flow negative once the mortgage is included.
Based on current market conditions, a yearly shortfall around $20,000 can represent a strong result in this price range.
The investment case is generally built around long term appreciation, principal paydown, rental income and the personal use the owner receives from the property.
This is where some financed properties begin to approach break even or positive cash flow.
Five bedrooms, a pool and proximity to the beach tend to have the greatest effect on rental performance because they are among the features renters consistently value most.
Without a mortgage, many properties that would otherwise run negative when financed can become cash flow positive.
Nearly half of LBI buyers since 2023 have purchased with cash.
At that point, the analysis becomes less about whether the property covers its carrying costs and more about how the projected return compares with other potential uses of that capital.
Every property, buyer and financing structure is different. That is why we analyze each property individually.
What makes a strong investment property on LBI
Two homes with similar square footage can produce very different rental income. When we evaluate a property, these are some of the first factors we look at.
1The town
Location on the Island matters. Beach Haven, for example, consistently commands strong rental rates, supported by its walkability, restaurants, attractions and proximity to Bay Village. Each of LBI's six municipalities also has its own property taxes, regulations and rental requirements that should be considered.
2Where it sits between the ocean and bay
A home's position within the block can have a meaningful impact on rental demand and weekly rates. We generally group properties into four location tiers:
- Tier 1Oceanfront
- Tier 2Oceanblock, bayfront and lagoonfront
- Tier 3Oceanside
- Tier 4Mid block and bayside
The differences can be significant, but they vary by town, street and property.
3A pool
A pool is one of the most valuable rental amenities on LBI. Depending on the home, location and rental season, properties with pools can command meaningfully higher weekly rates and generate greater overall rental income.
4Bedroom count
Bedroom count helps determine how many guests a property can accommodate, which directly affects its rental potential. Five bedroom homes are particularly popular because they can accommodate larger families and groups without moving into the price point of LBI's largest homes.
5Property condition
Condition matters beyond the age of the home. Updated finishes, quality furnishings and overall presentation can influence both weekly rates and occupancy. Two otherwise similar homes on the same street can perform very differently based on how they are updated, furnished and maintained.
Putting a number on it
There isn't one formula that applies to every LBI property. The value of a pool, an extra bedroom or a better block position changes depending on the home.
Using our LBI transaction database alongside rental data, we analyze those differences property by property to estimate how each factor could affect rental income and overall investment performance.
Get the Numbers on a PropertyRun the numbers on an LBI investment property
Use the calculator for a quick first look at a property. Our full analysis goes considerably deeper, with the rental season priced week by week, major expenses itemized, multiple financing scenarios and a complete ten year projection.
Not sure what to enter? Send us the property address and we can help estimate rental rates, taxes, insurance and other assumptions using available market data.
Send Us the AddressModel assumptions. The calculator also includes a 30 year loan when financed, estimated closing costs, TV and internet, routine repairs and miscellaneous expenses, rental advertising and emergency contractor expenses.
The model assumes self management unless otherwise noted. The final two weeks of August are calculated at 85% of the peak weekly rental rate.
All assumptions can be adjusted in a full property analysis.
Important. These results are estimates based on the assumptions entered and are intended to provide an initial view of how a property could perform.
Rental income, expenses, financing costs, property values and market conditions can change materially over time.
Our full analysis goes further by incorporating week by week rental pricing, additional financing scenarios, mansion tax where applicable, depreciation considerations and other property specific assumptions.
Your cash on LBI versus other investment alternatives
If you are buying with cash, the analysis changes.
Rather than focusing primarily on whether the property can cover its carrying costs, the more useful question becomes how the projected return from an LBI property compares with other potential uses of the same capital.
We can model the same starting amount invested in a specific LBI property and in the S&P 500, or another benchmark you would like to evaluate, over the same holding period.
The LBI analysis includes projected rental income, appreciation, ownership expenses and selling costs so the scenarios can be evaluated using a consistent set of assumptions.
What an LBI property can generate
- Property appreciation
- Rental income
- Personal use of the home
- Potential depreciation and other tax considerations
What we can compare it against
- S&P 500
- Treasuries and bonds
- CDs and high yield savings
- Another return assumption you would like to test
Every forecast clearly identifies the assumptions used and presents projected results year by year. The purpose is not to recommend one investment over another. It is to provide additional information that buyers can review alongside their financial and tax professionals.
222 7th Street, Beach Haven
Sold for $2,370,000 in early 2026 and modeled here as a cash purchase at that price. Five bedrooms across a main house and guest cottage, a short walk to the beach and downtown Beach Haven.
Illustrative example based on the $2,370,000 closing price in early 2026. Assumes a $16,500 peak weekly rate, a $9,000 shoulder weekly rate, four shoulder weeks reserved for personal use and 12% professional management. Rental income and operating expenses are held flat over the ten year period. Actual results may differ materially from projections, and future performance is not guaranteed.
Get a Cash Forecast on Your PropertyFive pages on any property you're seriously considering
Our backgrounds are in real estate, tax, data and analytics, and we have built our own databases and property models around the LBI market. Send us a property and we will break down the numbers so you can better understand the economics before making a decision.
- Property overview
The property, purchase price and financing terms that form the basis of the analysis.
- Ten year owner summary
Projected home value, rental income with and without professional management, cap rates, estimated yearly deductions and the projected break even point.
- Annual holding costs
Cash required at closing, mortgage payments, major income and expense items, projected yearly cash flow, return and monthly carrying cost.
- Rental income by week
An 18 week rental season priced Saturday to Saturday, with peak and shoulder rates, personal use weeks, cleaning fees and projected income shown under both professionally managed and self managed scenarios.
- Ten year projection
Total projected cash in and out over the holding period, estimated sale price, commissions, transfer costs, mansion tax where applicable and projected total return.
Also available: LBI versus market forecasts for cash buyers, side by side property comparisons and alternative financing scenarios.
The Guarino Team at Freeman & Company
Invest LBI is built by The Guarino Team, LBI's #1 buyer's team,* at Freeman & Company. We are a family team that combines local market experience with backgrounds in tax, data and analytics. The goal is straightforward: give buyers a clearer understanding of what they are buying, what it may cost to own and how different scenarios could perform over time.
Beau Guarino
Beau brings more than a decade of tax, data and analytics experience with PwC, Merck, Amgen and Intel to LBI real estate.
Before working full time in real estate, he built data and analytics models used by large companies to organize information, identify trends and support decision making.
He applied that same analytical approach to LBI, building the transaction databases and property models behind Invest LBI and personally running each property analysis.
I spent years building data and analytics models for large companies. I brought that same approach to LBI real estate so buyers can better understand the numbers behind a property before making a decision.Talk to Beau
Drew Guarino
Drew brings experience from Goldman Sachs to the real estate side of the process, including property selection, pricing, offer strategy, negotiation and transaction management through closing.
He has been responsible for more than 100 transactions totaling over $150 million in sales.†
Drew and The Guarino Team also maintain a five star rating on Zillow, with client reviews frequently highlighting his market knowledge, patience and professionalism.
He covers the real estate market each week for the LBI Locals market report.
Talk to Drew*Ranked #1 among LBI buyer's teams in both transaction count and sales volume based on Bright MLS data through Q3 2026.
†Closed transactions as listing or buyer's agent through September 2026. Source: Bright MLS.
How we work with investors
Start with your goals
Rental income, family use, long term appreciation, a 1031 exchange or some combination of the four. The right property depends on what you are trying to accomplish.
Source on and off market
We track the full LBI market and regularly hear about properties before they reach the MLS, including some that are ultimately sold off market.
Model the serious contenders
Once a property makes the short list, we run the numbers so you can compare the economics of each option rather than relying solely on listing price and presentation.
Build an offer strategy
We use current market conditions, comparable sales and historical transaction data to help determine an appropriate valuation before an offer is written.
Close and coordinate
We remain involved from contract through closing and can coordinate with attorneys, lenders, inspectors and qualified intermediaries when a 1031 exchange is involved.
Set up the rental
For owners who want professional management, we can assist with dynamic pricing, Airbnb, Vrbo and VRLBI exposure, turnovers and ongoing rental operations through our rental management service.
The investment properties buyers are choosing on LBI
Pool homes
Few features can influence both rental income and resale value as significantly as a pool.
On LBI, we typically see pools contribute roughly $200,000 to $400,000 in additional value and approximately 15% to 40% more rental income, depending on the property, location and overall home.
Search Pool Homes
Side by side duplexes
One of the more affordable ways to purchase newer construction with five bedrooms and a pool on LBI.
Two homes share a single lot, which generally allows each unit to sell at a lower price point than a comparable standalone new construction home.
Side by side duplexes are permitted in Beach Haven, Barnegat Light and Long Beach Township.
Search New Construction
Up and down duplexes
One building with two separately deeded units and the ability to rent each unit independently.
That flexibility can create a different rental income profile than a similarly priced single family home, which is why we analyze the two property types differently.
Search Duplexes and Multi Family
Commercial and mixed use
Retail, mixed use and income producing properties along Long Beach Boulevard and throughout the Island.
Search CommercialLBI investment property FAQ
Returns and financing
What makes a good investment property on LBI?
Most of it comes down to the features renters pay for.
Location within the block matters most, with oceanfront at the top, followed by oceanblock, bayfront and lagoonfront homes. A pool, five bedrooms and updated condition all push weekly rates higher.
Town matters too, since each LBI municipality has its own taxes and rental rules.
Price matters as well. With 20% down, homes around $2.5M and above with those features have the best chance of approaching break even. Most homes under $2M are bought for appreciation and personal use, with rental income offsetting part of the cost.
Do LBI rentals pay for themselves?
It depends on the property and how it is financed.
With 20% down, most homes under $2M run a yearly shortfall once the mortgage is included.
Based on current market conditions, a shortfall around $20,000 can represent a strong result in that range.
Around $2.5M and above, homes with five bedrooms, a pool and strong beach proximity generally have a better chance of approaching break even or producing positive cash flow.
Purchasing with cash changes the analysis considerably because the mortgage expense is removed.
Should I buy an LBI investment property with cash or a mortgage?
There is no single answer that applies to every buyer.
Financing allows you to keep more capital available for other uses, but it will generally result in lower annual cash flow because of debt service.
Paying cash can improve property level cash flow, but it also requires committing substantially more capital to the purchase.
We model both scenarios so you can understand the differences and review them with your financial and tax professionals.
If you are financing, we can also introduce you to local lenders who regularly work with LBI second homes and investment properties.
How does an LBI investment property compare with the S&P 500?
For cash buyers, we can model the comparison directly.
An LBI property can generate return through appreciation and rental income while also providing personal use.
The S&P 500 is liquid, passive and carries none of the operating responsibilities associated with owning real estate.
We model the same starting capital over the same holding period, including projected carrying and selling costs for the property, so you can compare the scenarios under a consistent set of assumptions.
The comparison is informational and illustrative only and is not a recommendation to purchase real estate or securities.
Which LBI neighborhoods are best for investing?
It depends on what you are trying to optimize.
Rental performance is often driven heavily by the characteristics of the property itself, particularly bedroom count, pool availability and proximity to the beach.
Town and neighborhood still matter.
Beach Haven, for example, consistently sees some of the strongest rental rates on the Island, supported by its walkability, restaurants, attractions and Bay Village.
Appreciation has also varied across different parts of LBI.
High Bar Harbor, for example, has experienced some of the strongest appreciation on the Island since before COVID.
Our monthly market reports track pricing and market activity throughout LBI.
Is a duplex a better investment than a single family home?
Not necessarily. They offer different advantages and tradeoffs.
Duplexes can lower the cost of entry and provide access to newer construction at a lower price point.
The tradeoff is shared land ownership, which may affect long term appreciation compared with owning a fee simple lot.
We use different assumptions for each ownership structure so buyers can see how those differences affect projected results over time.
Can I use a 1031 exchange to buy on LBI?
Qualifying LBI investment properties may be eligible for a 1031 exchange.
The timing, ownership and personal use rules can be complex, so buyers should involve their attorney, tax advisor and qualified intermediary early in the process.
We can coordinate the real estate side of the transaction alongside those professionals.
If you do not already have a team in place, we can also introduce you to attorneys, CPAs and qualified intermediaries who have experience with LBI transactions.
Owning and renting
When is the rental season on Long Beach Island?
We generally model an 18 week season.
The ten peak weeks run from late June through Labor Day and typically generate the majority of annual rental income.
Spring and fall shoulder weeks rent at lower rates, and many owners choose to reserve some of those weeks for personal use.
Can I use my LBI rental home myself?
Yes. Many owners do.
We can build personal use weeks directly into the rental projection.
Personal use can also affect the tax treatment of a property, so buyers should review their specific situation with a qualified tax professional.
We can introduce you to local CPAs who work with LBI rental property owners if needed.
What does it cost to own a home on LBI each year?
Beyond the mortgage, major expenses typically include property taxes, homeowners and flood insurance, utilities, TV and internet, routine repairs, rental advertising and pool maintenance where applicable.
Costs vary considerably from property to property, which is why we itemize them individually rather than relying on one blanket percentage.
We can also connect buyers with local contractors, pool companies and other service providers when appropriate.
How much does flood insurance matter?
Flood insurance can be a significant component of annual carrying costs.
Premiums vary based on factors including a property's flood zone, elevation, construction and insurance underwriting.
We include an estimated premium in every investment analysis, but buyers should confirm actual coverage and pricing directly with a qualified insurance professional before making a purchase decision.
We can also introduce buyers to local insurance professionals who regularly write homeowners and flood policies on LBI.
Are there rules for renting out a home on LBI?
Yes.
Rental registration, licensing and inspection requirements vary by municipality, and tax treatment can vary depending on how and where the property is rented.
We help identify requirements that may apply to a property, but buyers should confirm legal and tax obligations with the appropriate professionals.
Do I need to live near LBI to own a rental there?
No.
Owners can self manage from a distance or use a professional management company.
Our rental management service can handle pricing, guest communication, Airbnb, Vrbo and VRLBI exposure, turnovers, vendors and owner reporting.
Where can I find LBI investment properties for sale?
Every active listing on the Island is searchable on LBI Locals, including homes with a pool, duplexes and multi family homes and new construction.
Some of the better opportunities never reach the MLS. We regularly hear about properties before they are listed, and some sell off market entirely.
Tell us your budget and goals and we will send properties that fit, then run the numbers on the ones worth a closer look.
Can you connect me with local professionals?
Yes.
Buying and owning property on LBI often involves several different professionals, and we can introduce buyers to people our clients have worked with throughout the process.
That may include insurance agents, lenders, real estate attorneys, CPAs, qualified intermediaries, inspectors, contractors and property managers.
Buyers are always free to select their own professionals.
Our role is to help make the transaction and ownership process easier to navigate.
Didn't see your question? Call or text 609.467.4061.
Have a property in mind?
Send us the listing and we'll run the numbers. Call or text 609.467.4061 or email info@guarinoteam.com.
Get the weekly and monthly LBI market reports in your inbox.
Important Disclosures
The information, projections, estimates, calculations and comparisons provided by The Guarino Team and Invest LBI are intended for general informational and illustrative purposes only.
They are based on available market data, historical information, current conditions and assumptions that may change over time.
Real estate values, rental demand, rental rates, interest rates, financing terms, insurance costs, property taxes, operating expenses, laws, regulations and broader economic and market conditions may change materially.
Past performance is not indicative of future results, and no projection or estimate should be interpreted as a guarantee of appreciation, rental income, cash flow or investment return.
Future market conditions and investment performance are inherently uncertain. Neither The Guarino Team nor Freeman & Company Real Estate can predict the future performance of any property, security or other investment.
The Guarino Team and Freeman & Company Real Estate are real estate professionals. Unless separately engaged in another professional capacity, they are not acting as attorneys, accountants, CPAs, tax advisors, financial planners, CFAs, securities professionals, investment advisers, insurance advisers or lenders.
Any discussion of depreciation, 1031 exchanges, tax treatment, financing, securities, the S&P 500, alternative investments or projected returns is provided solely for informational and illustrative purposes and should not be relied upon as legal, tax, accounting, financial or investment advice.
Comparisons involving the S&P 500, bonds, Treasuries, CDs, savings accounts or other investments are hypothetical illustrations based on the assumptions shown. They are not recommendations to buy, sell or hold any security, real estate asset or other investment.
Actual results may differ materially from projected results.
Rental income projections may be affected by market demand, competition, property condition, amenities, owner use, weather, economic conditions and other factors outside the control of The Guarino Team or Freeman & Company Real Estate.
Operating expenses, insurance premiums, property taxes, repairs, maintenance and other ownership costs may also differ from the amounts modeled or estimated.
Buyers should independently verify information that is material to their purchase decision and consult the appropriate qualified professionals before purchasing a property, structuring a transaction or making an investment decision.
Depending on the circumstances, those professionals may include an attorney, CPA or other tax professional, CFA, financial advisor, investment manager, lender, mortgage professional, insurance professional, qualified intermediary, engineer, home inspector or other specialist.
Every buyer's financial circumstances, tax position, investment objectives, risk tolerance and intended use of a property are different.
Buyers should rely on their own professional advisors when determining whether a particular property, financing structure, tax strategy or investment approach is appropriate for them.
