All Forum Posts by: Walter Milam

If you choose to invest in south Bakersfield, stay west of the 99 for B class properties.  There are lots of C- and lower to the east. Good luck! 

The Oleander area has great Class C multifamily units. Stay north of Palm street and west of Chester Avenue. Anywhere else in the area can be rough! 

@Aaron Montague

Sounds advice! Thank you. 

I just closed on the duplex today, signed leases with both tenants, and got my first month's rent! 

Rent total: $1925

Mortgage: $1048

Lawn care/ water: $115

Monthly income: $762 (plus $250 in equity!)

Selling price was dropped to $200k

@Aaron Montague

Thank you for the breakdown! Very helpful for looking at true cash flow. 

Insurance is $50 a month, and I manage the property myself.

Both units have separate electric boxes if that is what you are asking. 

Benjamin,

Did you end up finding a good solution? Chase quick pay should work. Most major banks, including Chase and Citibank use Zelle to communicate to one another. You should be able to use chase quick pay to request the rent every month.

Walter

Sanjeez: I don't use housing programs. In the long term, I would refer have a property vacant for a few months than have someone trash it because I don't have control over who is in the unit. The tenants are already placed as of right now. One has been there for 8 months and the other for four years. I normally have a property management company place the tenant so they can vet them (I've had only success with this strategy at this point). I will manage the property myself. 

The price per unit/price per square foot was not really a consideration as rents in this area of town are well established and the units are priced fairly. The features of the units, tile floor throughout, newer roof, granite counter tops in the smaller unit, and the laundry rooms made these units to be solid rental property material for me. 

Don: Thank you for the observation! I normally plan on units making zero cash besides paying down the loan. Any cash I  make I keep on hand for repairs or until I can pay off one of my loans outright.

I realize most people on the forums will say, reinvest, refinance, and all the other things to acquire more rentals or flip houses. I do not buy into that line of thinking. I am a saver at heart and if/when the housing or stock market crashes, I will take the opportunity to reinvest then. 

Hello all, 

I am about to close escrow next week on a 3/2, 2/1 duplex in Bakersfield CA. It is located in Oildale, a "rougher" part of town. Fortunately, it is in the north side (north of the river), which has seen some great development commercially and residentially. The duplex has laundry rooms in each unit and tile (wood looking) throughout. The roof is 2 years old and the AC units look great. 

This will be my second rental property, the other was my first home now rental for the last year and a half. 

I excluded ROI or any other calculation in this post so free feel to include that in your comments if it has some bearing on something I may be missing.

The details:

Purchase Price: $225,000 (down from an asking price of $240k)

On the MLS for 6 days at the time of offer.

25% down (my own savings) ($55k)

Closing cost (7k)

62k total closing cost

4% investment property loan through aimloan.com

Projected monthly mortgage (with impound account): ~$1108. 

Water: ~$50

Lawn Care: ~75

Rents: 3/2 - $1000, 2/1 - $875

Total: $1875 from rent

Monthly Cashflow (excluding budgeting for repairs): ~$650

Thoughts? Concerns? Congratulatory jubilation?!

Thank you for reading and commenting,

Walter

Sanjeev, 

Thank you! I would be interested in contacting. Busy busy right now with escrow coming up. Lets contact in a few weeks.

-Walter

Looking forward to it!

CRE is interesting. The ROI seems to be solid!