All Forum Posts by: Gene Hacker

 Hi Pablo, I am not sure.  I don't know or follow the three rivers area other than driving through a few times a year for kayaking. Dig into the data. How are current STRs doing?  How booked are they? What are the nightly rates being offered by the ones that are consistently booked? 

Make sure you look at very recent data, not 2021 when trying to determine performance. We have STRs in the Kern River Valley (Near Lake Isabella and the Kern River). There is so much new supply/inventory, that prices and bookings are WAY down. We converted one of our STRs into an LTR lately as it was not worth dealing with the extra STR hassles. Gas prices, recession, and tons of STRs have created a perfect storm for nightly rate decline. On the flip side it has been great for traveling. I got a San Diego STR for around half of what I paid the same week last year, and I have had the same experience in St. George UT too. Dramatically cheaper rates than previous years.

The local market has continued to deteriorate for STRs. Available units are WAY up and demand is down. I dropped my prices considerably and I still have much lower occupancy compared to a year ago. I converted one of my properties from an STR back to an LTR as it will make the same and is so much less work.

I have rentals in the Lake Isabella area around 35 minutes east of Bakersfield. Bakersfield is one of the few places in California where someone can actually achieve positive cash flow. 

I would want to make sure each of the other two guys could afford and qualify for the unit on their own.  Roommates and couples often split on each other. It is much easier if whoever decides to stay can afford it.  If they can only qualify when their resources are pooled then move on. 

Anyone can get the police involved.  It doesn't have to be the tenant. There are major expenses when it comes to selling and buying properties.  If you want to get out of the landlord business then maybe this is a good time.  But if you want to hold rentals, then it is better to address this issue and move forward.  

Welcome Nigel, It is always good to meet a new Kern County investor.  

I don't know if there are any websites that will help you determine that.  The goto site for traveling nurses is "funished finder".  You can use that to see what competition you may have in the area. 

How close are your units to a local hospital?

Are your units in good/safe areas?

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Income taxes and cap gain taxes are very high, but property taxes are very low in California.  Around 1% and generally stay below the rate of appreciation due to Prop 13.  California has some major downsides (mainly being very tenant-friendly) but property taxes are very low.