Sacramento CA vs Bakersfield CA investment

[Kamal Sharma]

Hi,

I am planning to do a rental investment in 3bed/2bath SFH property somewhere in the price range of 250-300K.

So far, I have narrowed down to Sacramento, CA and Bakersfield CA.

From what I have gathered, Orangevale, Rocklin and Roseville looks promising. However, it is hard to find a property with positive cashflow. However, these towns are quite upcoming with some good school districts.

The other option is to invest in Southern part of Bakersfield CA in Kern County where prices are quite low and give positive cash flow.

Does anyone have any suggestions regarding this?

Thanks. 

[Sanjeev Advani]

Hi @Kamal Sharma

If you are looking to do a positive cash flow rental investment, I would have to recommend Bakersfield for a few reasons.  We are in close proximity to LA, and the high speed rail is set to open a new station in Bakersfield by 2023 which will start dramatically increasing the population of the surrounding areas.  Also, we are seeing oil come back and Bakersfield diversifying its job force away from solely agriculture and oil, which is always good.  In fact, we have some of the largest expansion in Supply chain/logistics jobs because of the central location which provides strong incomes to the people coming into the area.  On top of that, Bakersfield will be getting some of its largest development projects in history within the next few years, and once those are built they will also add value to the housing market in Bakersfield.  

There are some other reasons to invest in the Bakersfield market, but the reasons above are probably some of the stronger reasons to invest in the area.  

Positive cash flow properties are still in the area and you can get a good cash flowing property in the budget which you are asking.  

If you would like to discuss further feel free to PM me!