All Forum Posts by: Amber Smith

hi there! I have to respectfully disagree with the prior comments about ca (specifically bakersfield) not cash flowing. 

I actually used a heloc on my primary residence to buy a 4plex in Taft (45 min south west of Bakersfield) in December 2016 and it cash flows very nicely, about 1000$-1200$ a month. I've had no problems with vacancy, low maintenance and expenses, I manage it myself & I got a great deal on it. 

I have noticed in recent months that rental properties are getting more expensive and it's hard to find 4 plexes under 200k. I got mine for 168k. 

As far as using a heloc, it is a great way to pull out cash, but since it is essentially a monthly payment, it affects your bottom line. So my plan with it was to pay as much as I could on it & pay it off in 2 years. I ended up selling my primary residence though & have since paid off that heloc. 

If you have any questions about the kern county market, feel free to reach out & don't give up!! 

Hi Jeff! I'm definitely not an expert by any means, but I have some experience in this field. I've been a landlord in the past when I managed my dads house for 3 years and am a current landlord for my own 4 unit property I bought in December 2016 in Taft, ca. 

I think the demand for affordable rentals is still strong. I have had no trouble renting out my units in Taft, and that is primarily an oil town and has a population of about 9500 (compared to Bakersfield population of about 350,000). 

As far as east vs west, the west side is a lot nicer & families probably would prefer to live on that side of town because of better schools, newer shops & restaurants etc. But as far as cash flow potential, I think you're better off looking in either central Bakersfield, the east side & oildale. Properties in the north west & south west are in high demand, so prices are on the high end and there just aren't as many multi units. On the east side you can easily find a cash flowing 4 unit for under $250k. That would be very hard to find on the west side. 

As long as you look for a property that is in decent shape, has solid tenants in place and doesn't have a lot of monthly expenses, you can easily find something that will be a good investment. Good luck on your search! 

Thanks for all that info! My realtor didn't ask for any of that or know about it I think...I have copies of the leases & know the rent amounts, but at least I know what to ask for next time :) 

Awesome, that's what I was thinking , I am definitely going to make sure the seller gives them to me as part of closing. Thanks! 

Side note, can I private message you about your investments in Bakersfield? I'm always looking to chat with other investors about their experience & get any advice I can :) 

Thanks everyone, I just asked my agent & mortgage broker to ask the seller for them at closing! 

Hi Everyone! I am in kern county, CA and in escrow on my first 4 unit property and currently 3/4 units are tenant occupied and am wondering if I should get those 3 security deposits from the seller upon closing? I spoke to the property manager & she told me that they do not take the deposits upon signing the leases with the tenants, so the current owner has them and would probably keep them upon closing. Everything I've read so far seems to imply that I should get them in closing since I will be responsible for giving some or all of that $ back to the tenants I am inheriting if & when they decide to leave. Is this something I Am legally  allowed to ask for at closing & that it will NOT count as a seller credit? In ca on a conventional loan for multi units you can only get a max of 2% seller credit at closing which I am already getting. Thanks! 

@Brad B. I agree with you, the more I'm thinking & talking to other people, the more the mt Vernon one is scaring me haha. 

@Max Gradowitz I know I'm not calculating cash flow the way most people on here do...I am getting a loan with 20% cash down...I am factoring in mortgage, prop tax, insurance, listed expenses and vacancy factor...I know a lot of people Include cap ex, which I know is a huge factor, but because I have a good amount of cash saved, I'm not including it in my deciding factor of buying the property, does that make sense? I'm also not going to use a property manager because I have a history of being a landlord and know good handymen & people that can help with evictions & tenant screening... if there's any other things I'm missing in expenses, definitely let me know! 

I would love to find something in the southwest, but even looking up to 275k, I have yet to find any multi units there that net more than 100$ or so cash flow :/ 

The Oildale one is definitely less scary than the mount Vernon because of the street it's on. 

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

@Jerry Padilla thank you! Luckily for me, my mom was wrong haha. My lender told me it can be used for down payment but you're right, it does count toward DTI, which thankfully for me, is low. So now I'm on to step 2, finding a good unit.