All Forum Posts by: Josh Justiniano

Bakersfield is tricky. If you're in the 80k range you're in a C or D neighborhood, and I'd account for at least 10% vacancy. If not, more depending on the neighborhood.

$800 would be top of market for those types of neighborhoods for a 2 bed (assuming it's a 2 bed house), so your vacancy and bad debt expenses are going to be even higher. Unless it's a 3 bed house, then you're probably OK. 

If you're going to buy in those neighborhoods, try to get around $25 to $50 cheaper in rent and make up for it with a long term good tenant.

If I were you, I'd knock him or her down on price. 1% rule of thumb won't work in C or D neighborhoods.

I started out without any of those "gurus" at 21 wholesaling and flipping. Read books, talk to people, make relationships. If you're starting out wholesaling, it's really simple. There's not a whole lot you have to know. If that's what you're doing, don't buy any programs. If you're doing a buy-hold strategy, having a mentor can eliminate a lot of the mistakes.

The only one I'd recommend if you really need it is @Joe Fairless. (especially if you're buying and holding)

He's only 2k up front and his info is pretty valuable. He has unlimited talk time every month. I use him for multifamily and it's worth it.

I'd try using the =CONCATENATE formula to combine cells, then use " " or ", " as spaces or commas. 

For example: =CONCATENATE(Q2," ",W2,V2,", ",R2,", ",S2, " ",T2) where Q2 would be the site address, and W2 and V2 would be suite or Apartment number, R2 would be city.

There are other formulas you can use to deconstruct a cell such as =find and =search, and =mid, and =right in some combination, but that's going to get really complicated. 

Your DSCR looks off. It's more like 1.59 rounded. (Looks like you had 1.10)

DSCR = NOI / ADS

1.59 = $13,000 / $8,200

Other than that... looks pretty realistic.

Use rentrange.com if you haven't already done some rental comps. One of the best tools for rental comps out there.

I use IC. Takes a long time to get going. I'm in SoCal, so it's pretty competitive mind you. It took over 1 year to get a lot of traction after consistent SEO services and pretty consistent content writing and blog posts. 

Overall, I'd say it's worth it if you dedicate a monthly budget to SEO, and time to write and add content to your site. I've closed deals from it and have made a pretty good return.

What is the size and beds/baths? $700 seems pretty low... maybe owner hasn't raised rents in a long while? Bakersfield is kind of a tricky place. It changes block to block. You can go a few streets over and be in a completely different neighborhood (Alta Vista, Kern Medical Center or Oleander/Sunset neighborhoods are good examples of neighborhoods that change block to block) Do you have some cross streets or a general area it is located in? Maybe I can tell you about the neighborhood.

I'd account for 4% to 7% vacancy as well (depending on the area). 

I'd also pull a RentRange report (search it on google) to find the vacancy rate, market rent etc... It's way better than rentometer.com 

To answer your question about if it's a good deal for Bako... there are some places in Bakersfield where I would never touch a 12% cash on cash return property and there are some places where an 8% return is really good. It just depends on the area.. and that determines risk.

try b2r financing

32k honestly is hard to flip with in CA. If you partner with someone (I know a few folks in Bakersfield) it might stretch your money. 

Putting down on a 95k rental might work but has to be rent ready and that should leave you with some extra money to work with as a cushion. 

If I were you and looking to invest full time, I'd use some money on finding deals and building a business. 

Otherwise best bet is find partners. 

Congrats! How did you structure the deal? Are you taking equity, or an acquisition fee, or both?

@Bill Baldwin welcome Bill! Interested in knowing why you chose Japan. Specifically, why with likely declining NOI over time you chose Japan. (with low or negative population growth, deflationary economy etc..)

What part of Bakersfield did you buy the 6-plex? Was it on or off market?