Multi family rental in Bakersfield

[Jeff Wong]

Hello,

I am first time investor and looking to buy multi-family 2-3 unit property in Bakersfield. Looking for any tips for how the rental market is in Bakersfield, is demand for rental holding steady or if its in a decline. Is it generally better to own multi family on east vs west? I ask this because I have heard from one family member, who lives there, that rental demand is declining and oil business is slowing down. I'm uncertain to how much truth this is. 

I'm hoping to get something in an area where there will be renter demand and turnover won't be too frequent of difficult.

Thank you for any insight and help!   

[Amber Smith]

Hi Jeff! I'm definitely not an expert by any means, but I have some experience in this field. I've been a landlord in the past when I managed my dads house for 3 years and am a current landlord for my own 4 unit property I bought in December 2016 in Taft, ca. 

I think the demand for affordable rentals is still strong. I have had no trouble renting out my units in Taft, and that is primarily an oil town and has a population of about 9500 (compared to Bakersfield population of about 350,000). 

As far as east vs west, the west side is a lot nicer & families probably would prefer to live on that side of town because of better schools, newer shops & restaurants etc. But as far as cash flow potential, I think you're better off looking in either central Bakersfield, the east side & oildale. Properties in the north west & south west are in high demand, so prices are on the high end and there just aren't as many multi units. On the east side you can easily find a cash flowing 4 unit for under $250k. That would be very hard to find on the west side. 

As long as you look for a property that is in decent shape, has solid tenants in place and doesn't have a lot of monthly expenses, you can easily find something that will be a good investment. Good luck on your search!