Need Property Manager at Bakersfield, CA

[Dhanasekaran Ranganathan]

Hi All, I am planning to invest in Bakersfield, CA and looking to build a local team. Can you please recommend Property Managers in the Bakersfield Area. Thanks!

[Sanjeev Advani]

Hi @Dhanasekaran Ranganathan

Glad to hear that you are planning to invest in Bakersfield.  I do believe that this market is going to be good over the mid term hold and longer, and there are many things going on in town that haven't been happening before.  For example, the boom in transportation business, growth in jobs, and development. 

Because we have such an in depth post below yours, I am going to attempt to add to the analysis below and hopefully that can be of help to you as well.

@Account Closed you are correct Bakersfield is hot, however, not as hot as Phoenix, which currently has a population 4x that of Bakersfield and was build around a lot of the same principles that Bakersfield is moving towards now. 

I would agree with your point that in San Francisco, you do have more rent, and the cost of paint really doesn't change that much, but at the same time, you also have to use higher end and more expensive finishes to achieve those higher end and more expensive rents which do end up costing a lot more, and this point is strictly taking into account property appreciation while leaving out the thought of cash flow. 

I agree with the long term rental argument, unless you know how to build a team or have the time and energy to go do it yourself out in where it is that you want to invest. 

I would love to see the math on your business model.  I can see that you might be correct, but just 'back of the napkin':

• $2M house near the Ocean - let's use Newport Beach - 5 year appreciation 27%
• $2M in SFR's - let's use Bakersfield - 5 year appreciation 44%
• Difference - 17% over 5 years - 3.4%/year greater in Bakersfield

• $2M house near the Ocean - Newport Beach - $0 cash flow long term rental
• $2M in SFR's - Bakersfield - 6%/year long term rental
• Difference 6%/year - 30% over 5 years greater in Bakersfield

Now there may be other markets this works in, but my point is statement doesn't really work.  IMO, in all markets there is strategy.

And this is true, if you want to use whole life or some 'wealthy' persons investment strategies then you will earn 4-5% on your money, and if you own a property which will get you the same return then you may as well go with the safer option.  But there are also benefits to people who own real estate that people who have whole life insurance may not get, and the same for stock portfolios, but I'm not well versed in those things, so I would be open to learning. 

@Dhanasekaran Ranganathan the point being, if you are looking to invest in Bakersfield or anywhere else, know your numbers, and make sure your strategy works for you.  If it doesn't then don't do it.  Feel free to PM me to chat further as well. 

Best of luck,

Sunny