Hello,
My wife and I recently ventured into real estate investment and have acquired a 0.4-acre lot in Bakersfield, California, within an R2-zoned area, Oleander Sunset area. This zoning allows for single-family homes, duplexes, and other medium-density multifamily residential uses, with a maximum density of sixteen (16) dwelling units per net acre.
We're seeking advice on how to maximize the potential ROI of our lot. Specifically, we're exploring whether constructing a duplex and triplex or two duplexes would be the most profitable option. We welcome any suggestions or insights you may have.
Additionally, if anyone has information on the approximate cost of building a duplex and triplex in California, we would greatly appreciate your input.
To provide context, neighboring properties in the area we bought offer insights into the local housing market. On one side, there's a 5-bedroom, 3-bath home spanning 2,105 sqft (total lot: 0.40 acre), valued at approximately $341K. On the other side, a 3-bedroom, 2-bath home measuring 1 600 sqft is valued at around $300K (total lot: 0.41 acre), according to Zillow. Homes in this area typically sell between $250K and $350K. Most residences are single-family homes under 1500 sqft, with generous lot sizes ranging from 7,000 sqft to 0.5 acres for some properties.
Interestingly, despite ample space, vacant lots in this area remain undeveloped with no additional units added. The majority of existing houses were built in the 1930s, contributing to the unique character of the neighborhood. This area is notably affordable compared to others in the city, with property values experiencing significant appreciation—increasing by 100% over the past 7 years. Houses in this area was selling for 100k in 2017.
Thank you for any insights or advice you can provide.
