Who Here Has Rentals In Bakersfield, CA

[Taylor Jordan]

It looks to me like the area is heating up. Would love to know what kind of returns we're getting seeing this really seems like the play for CA investors.

[Sanjeev Advani]

@Taylor Jordan

Bakersfield is heating up and even the mountain areas around Bakersfield seem to be doing pretty well like @Gene Hacker mentioned.  I would say that on average right now you are seeing some pretty good cap rates, as those have started to increase with the interest rate increase as well.  For example, prior to the rate increase, mostly you would see a turn key B/C property around a 5.5-6.5% cap while now you are seeing 7%+ pretty regularly.  

The issue becomes when outside investors see those rates they start to think that they are getting "killer" deals, which in reality they most likely are in the long run, however, those "killer" deals end up killing their bank accounts because they do not know enough about the area.  I have seen many people purchase properties which should have never been purchased because they were in areas that were misrepresented, or the properties had much more damage than was actually lead on.  I would just make sure you are speaking with someone who regularly works income property and knows the area.