All Forum Posts by: Sanjeev Advani

@Cameron Hamidi - What type of property do you have here in town? 

@Javier Rosales - there are a few good architects in town, what type of building are you looking to work on? 

@Gene Hacker - thanks!

@Adam Yonan - If you are looking to start with multifamily or single family in Bakersfield, do you know what type of properties you would be looking for?  

Clearly you would like A/B neighborhood, but what is more important?  Are you looking for cash flow or are you looking for a nice neighborhood?  What is the purpose of your investment?  

If you are strictly looking at neighborhoods then the West side of town is generally where people will look, but that being said there are gentrifying areas which are not on the West side of town that could provide a large growth opportunity as well.  

Regarding business, logistics is huge with many MNC's bringing their distribution and warehousing to Bakersfield (Amazon, Smuckers, Target, Ross, Ikea, John Deere, and many more like them).  As always Bakersfield is still a top player in the farming and oil sectors as well, but less so in oil in the recent past given CA's stance on oil.  

Hope this helps, and feel free to PM me as well if you are interested in chatting further! 

Best

Sunny

@Taylor Jordan

Bakersfield is heating up and even the mountain areas around Bakersfield seem to be doing pretty well like @Gene Hacker mentioned.  I would say that on average right now you are seeing some pretty good cap rates, as those have started to increase with the interest rate increase as well.  For example, prior to the rate increase, mostly you would see a turn key B/C property around a 5.5-6.5% cap while now you are seeing 7%+ pretty regularly.  

The issue becomes when outside investors see those rates they start to think that they are getting "killer" deals, which in reality they most likely are in the long run, however, those "killer" deals end up killing their bank accounts because they do not know enough about the area.  I have seen many people purchase properties which should have never been purchased because they were in areas that were misrepresented, or the properties had much more damage than was actually lead on.  I would just make sure you are speaking with someone who regularly works income property and knows the area. 

@Jorge Herrera congrats on your deal!  Wish you the best!  Feel free to PM me if you have any questions as well!

@Diana Robayo - I definitely recommend @Gene Hacker and his company for this.  He is super knowledgeable and willing to explain. 

@Vianey Monica galdamez glad to hear it - feel free to PM me to talk further as well. 

@Vianey Monica galdamez - what brought you to Bakersfield to look for a property?  Are you looking for a buy and hold or would you like some value add?  

Best of luck with your search!

Feel free to PM me if you have any other questions as well!

@Dalton Thornsberry - definitely a good problem to have!  

Being that access to equity is much harder than it used to be, and that the fees on the loans are higher, if your amortization doesn't work out then, that doesn't seem to be a viable idea to me.  

If this was me, I would either keep the property and let it get paid down further and put together outside funds to keep purchasing more for yourself, or I would sell this property and exchange into something that makes more financial sense, like a multi.  

Given that, I would focus on selling currently, but then the problem is trying to find something new to purchase that will work for you, especially that rates are higher, and therefore, cash flow lower.  If you are able to find something, then I think that is a great way to go as you can get maybe the same cash flow, but have a higher principal amount paid off in time.  

If you just sell the property, it sounds like you have stepped outside of the capital gains timeline, and therefore would pay regular tax on the sale, which would leave you with around 2/3 of the original amount, and then you can wait for the market to come down (if that is what you think will happen) and purchase at that time because if the market comes down, then you should have lower rates as well as lower prices.  

Best of luck either way!

Feel free to PM to chat further as well!

Best

Sunny

@Vaheh Takhmazyan - a property by the river would be a GREAT STR. If you currently live at the property, are you thinking about renting out a guest unit?

Who are you checking with at the City and what are your questions? 

Wish you the best of luck!  Please feel free to PM me as well for further questions!