Bakersfield multi unit- help evaluate 2 different deals

[Amber Smith]

I am looking to buy my first multi unit property in Bakersfield, ca and am debating between 2 different units and would like some advice on which would be the better option, particularly relating to the neighborhoods. Both are in c/d neighborhoods, which doesn't bother me since I've grown up in those areas and have been a landlord in similar areas on a house I previously took care of.

I would love any advice on the 2 units, especially from anyone who lives or owns rentals in these areas or has experience in these areas. Here's the info...

Deal 1- oildale, nice neighborhood, more sf homes with a few rentals.

160k-3 units- 1 vacant at the moment being remodeled- cash flow about 855$ after expenses & vacancy factor (self managed)- cap rate .12

Deal 2- mount Vernon near kmc, on a busy street in a dicey area but still high demand rent area.

225k- 4 units fully rented with long term tenants- cash flow about 841$ after expenses & vacancy factor (self managed) - cap rate 

Oildale pros- nice neighborhood, lower purchase price & money down 

Cons- lots of multi units for sale in a mile radius- might be hard to rent & 1 vacant unit

Mount Vernon pros-  fully rented, near where I live 

Cons- near a busy hospital, sort of a bad area, higher purchase price & money down

[Max Gradowitz]

Feel free to PM me if you'd like me to run the numbers and get a second opinion. I'm sure the property cash flows well, as most Oildale multi-units do, but $800 is literally double what I see in monthly cash flow when I run my numbers on these types of properties. My guess is that you might be underestimating property taxes, maintenance expenses, and vacancies. People can put whatever they want on listings, there are no MLS rules about what expenses should be included in the "expenses". Agents usually just ask the seller "hey, how much do you spend on utilities and maintenance approximately?" and just take their word for it, and it's often underestimated.

That cash flow just sounds suspiciously too high for me, even accounting for no management fee, just sayin'...