Buy and Hold Multifamily in Bakersfield CA

[Matt Owen]

Hello All,

I've been doing lots of deal analysis off of the MLS recently in Bakersfield. I am looking to get some feedback on this property. I'm still getting accustomed to the area so my current strategy is to go though all the listings and determine what is a good deal. I'm setting any property that performs higher than a 7% cap rate given my assumptions aside so I can further research the neighborhood. That seems to be a reasonable rate of return on a property around here. I would welcome peoples opinions about that.

Everything I have found so far seems to be in B-C class areas although with no experience how do I tell the difference? I don't want to buy a property in an area that I'm scared to go to. How do I really know just by driving by? research the crime statistics in the area? I know there will be some but what is a red flag that there is too much?

I use the same assumptions for each property. this property came out with an expense ratio of 40.6%. Most properties I put in this sheet come out between 42-47%. Look forward to everyone's feedback on my spreadsheet and assumptions. Since this property mentioned they had some deferred maintenance in the listing I added $10,000 for improvements. 

Please feel free to steal the spreadsheet if you like it! I modeled it after a picture I saw of Brandon's on this site anyway.

https://docs.google.com/spreadsheets/d/14C0oawhJyD...

Thanks,

Matt