Thoughts on bakers field California

[Angelo Llamas]

Been interested in purchasing in the San Joachin valley for some time now. Been looking at Bakersfield an I’m not from the area so was wondering if anyone had any insight if it’s a good place to buy an if so do you know where are good places within are an what places should you stay away from. Thanks 

[Gene Hacker]

Bakersfield is not as glamorous as many areas in California but I personally think it is a good choice for cashflow and fundamentally solid growth. It is a growing city and it is affordable. There is a lot of information online in terms of growth, demographics, etc.

The less expensive areas tend to have pretty old houses and there tends to be a trend of deferred maintenance.

I highly recommend spending a day or two driving around and taking notes on different neighborhoods and areas. Bakersfield is small enough that you can get "the lay of the land" in a day or two.

You can also use google street view to "tour" the streets around specific subject properties.

There is no one Bakersfield neighborhood that is so much better for investing than all the rest. Each will have advantages and disadvantages and the variables are generally priced in. If you are looking to be very hands-on and don't mind a bit more work, then the class c areas with a better price/rent ratio may be better. If you are looking for a more passive investment, then a more desirable class B/B+ area could be a better choice. There are people that make money in Oildale and the rough areas of East Bakersfield, but turnover costs can be very high. Some investors prefer solid class B areas where it is easier to find better tenants but where the rent/price ratio is not as good.