Duplex southwest of Bakersfield in Taft CA.

Duplex southwest of Bakersfield in Taft CA.

Member since 2019 · 10 posts · 1 vote

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $108,900
Cash invested: $1,050

Duplex 1 bed 1 bath each side

What made you interested in investing in this type of deal?

The price per door in w/ tenants already living and loving where they stayed, thought it would be a great 1st purchase

How did you find this deal and how did you negotiate it?

On realtor.com they we’re asking $124,900, offered $105,000 negotiated and closed just under $109,000

How did you finance this deal?

Cash Deal my friend!

How did you add value to the deal?

Offered to pay all of closing, cash buyer, w/ no contingencies.

What was the outcome?

Deal

Lessons learned? Challenges?

Not sure as of yet

0Reply
98 views

Most Popular Reply

Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
7y
Originally posted by @David Avetisyan:
Originally posted by @Jeff C.:

I've owned a few Taft properties over the years. Just sold one last month. Don't care for the place frankly, and I'm quite happy to not have a reason to drive out there again for while!

 What exactly turns you off about Taft?

Imagine everything you might ever want a city.

Then imagine a city with zero of those things.

Congratulations, you now understand Taft.

High crime rate (roughly double the national average), a per capita income far below the national average, little job growth, poorly ranked schools, aging housing stock that has far more than the usual percentage of derelict properties (no reason to build new housing with no population growth), a largely uneducated populous, and zero entertainment (other than committing crimes or watching others commit crimes, apparently), and it's marooned by itself in the middle of nowhere with no other cities reasonably close that could provide any either. But, at least you can enjoy the 110 degree summers and views like this all around:

See this reply in the discussion

25 Replies

Jump to latestLatest
  • Investor · Bakersfield, CA · Member since 2015 · 483 posts · 234 votes
    7y

    @David Fox if you don't mind, what is the cash flow looking like up there?  What screening did the Tenants have to go through?  I am assuming all units are occupied, but if not how is the incoming tenant lead count and quality? 

  • Kern County, CA · Member since 2018 · 16 posts · 3 votes
    7y
    Originally posted by @David Fox:

    Investment Info:

    Small multi-family (2-4 units) buy & hold investment.

    Purchase price: $108,900

    Cash invested: $1,050

    Duplex 1 bed 1 bath each side

    What made you interested in investing in this type of deal?

    The price per door in w/ tenants already living and loving where they stayed, thought it would be a great 1st purchase

    How did you find this deal and how did you negotiate it?

    On realtor.com they we’re asking $124,900, offered $105,000 negotiated and closed just under $109,000

    How did you finance this deal?

    Cash Deal my friend!

    How did you add value to the deal?

    Offered to pay all of closing, cash buyer, w/ no contingencies.

    What was the outcome?

    Deal

    Lessons learned? Challenges?

    Not sure as of yet

    Be a little wary in Taft. I’ve inspected a couple of homes in the area that have had ground/foundation issues due to oil drilling in the area. 

  • Member since 2019 · 10 posts · 1 vote
    7y

    @Sanjeev Advani rent from ea. Tenant is $505, tenants have been there since previous owner so never did screening. Both units are occupied.  

    @Account Closed the previous owner had had done foundation and structural work done prior to sell. Your right a few properties have that problem in Taft.

  • Rental Property Investor · Glendale, CA · Member since 2013 · 685 posts · 334 votes
    7y

    Congrats on the purchase David!

    If you don’t mind I ask:

    • Are you investing local or long distance?

    • How did you become interested in Taft?

    I’ve been looking for a 4 plex in Bakersfield and haven’t found anything where the numbers even make remote sense.

    To your success! 

  • Long Beach, CA · Member since 2018 · 18 posts · 6 votes
    7y

    Hey David congrats on your investment! Was wondering if you paid cash why is your cash invested 1050? thanks 

  • Member since 2019 · 10 posts · 1 vote
    7y

    Thank you @David Avetisyan, Taft was the only place I was able to find a multi unit at a price I could afford, made a offer and they accepted. @Lenny Figueroa the rent will be $525 starting April, tenants were notified and signed agreement, I just didn’t want to have to edit the profile later. Currently collecting $1,010 total, come April will be collecting $1,050.

  • Kern County, CA · Member since 2018 · 16 posts · 3 votes
    7y
    Originally posted by @David Fox:

    Thank you @David Avetisyan, Taft was the only place I was able to find a multi unit at a price I could afford, made a offer and they accepted. @Lenny Figueroa the rent will be $525 starting April, tenants were notified and signed agreement, I just didn’t want to have to edit the profile later. Currently collecting $1,010 total, come April will be collecting $1,050.

    Mate, try contacting a few property management companies to discuss how you should tenant properties in that area. There are oil companies in the area which will lease decent properties from home owners. You’re less likely to have tenant issues if the lease is through a company. Tenants are less likely to damage property and keep it in good condition if the company they work for is leasing it. 

  • Investor · Bakersfield, CA · Member since 2015 · 483 posts · 234 votes
    7y

    @David Avetisyan where are you looking for properties?  What type of returns are you looking for?  Generally, we don't see that issue.  Feel free to PM me as well, would love to help. 

  • Investor · Gardena, CA · Member since 2016 · 41 posts · 14 votes
    7y

    There have always been oil companies in the area, but roughnecks are not ideal tenants and  there are also dozens of rigs laid over in the yard right now. If the units are in good condition, you shouldn't have trouble finding tenants at $525-550/month. Why this particular duplex as opposed to other duplexes or 2 homes on 1 lot that were available in Taft last year?

  • Investor · Bakersfield, CA · Member since 2016 · 70 posts · 38 votes
    7y

    @David Fox

    congrats on finding something in Taft! My first rental property was a 4 plex in taft and it still produces an excellent cash flow.

    As far as tenants in Taft, mine are all great. I have had 2 bad tenants that were decent for most of their lease, then turned difficult toward the last few months. Luckily I haven’t had to evict or repair major damage yet *knock on wood* lol

    Taft is definitely my favorite spot to invest right now, but there are also great cash flowing properties in Bakersfield, you just have to know where to look and be willing to take some risk.

    Where in taft is your duplex? 

  • Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    7y

    I've owned a few Taft properties over the years. Just sold one last month. Don't care for the place frankly, and I'm quite happy to not have a reason to drive out there again for while!

  • Member since 2019 · 10 posts · 1 vote
    7y

    @Ricardo Paredes this was the best deal I was able to find at the time, I visited the area and the tenants and had good vibes about property and area, even though Taft has not been so great of a town as of late, had good feelings about the property  neighborhood and tenants.

  • Member since 2019 · 10 posts · 1 vote
    7y

    Thank you @Amber Smith, a 4 plex wow ! I would have loved to find a 4 plex in my price range. I did not want to  finance any property, the property is on Philippine St. Cross street Harding st. On the west side of Taft.  Definitely agree So far things are going well, prices are what I like about Taft,  would definitely like to find a investment property  in Bakersfield CA. Just trying to learn more about  financing options.

  • Member since 2019 · 10 posts · 1 vote
    7y

    Hey @Jeff C. agree about driving up to Taft it’s about 2 hours away, I’ve only gone up there twice in the 11 months I’ve owned the property. Not the idea road trip

  • Member since 2019 · 10 posts · 1 vote
    7y

    Question  The property is currently on month-to-month lease W/ one doing that for 6 years and the other for almost 3 years. Would like to make 1 year or 2 years leases with tenants but not sure on how to do it since I am the owner and manager,  I don’t want the tenants to seem pressured  also not sure how to do it 

  • Rental Property Investor · Sheridan, OR · Member since 2011 · 32 posts · 23 votes
    7y

    @David Fox at this point why mess with success? The month-to-month is working for years now so why rock the boat.  Unfortunately if you do get a year lease and the tenant breaks it there isn't much you can do about it. Try to collect the rest of the lease?  That probably won't happen.  I do use year leases but the reality is, in my opinion, that they are more of a formality that something you can enforce and collect on.  What tenant in Taft is going to have the money to pay the rest of a broken lease?  I

  • Rental Property Investor · Glendale, CA · Member since 2013 · 685 posts · 334 votes
    7y
    Originally posted by @Jeff C.:

    I've owned a few Taft properties over the years. Just sold one last month. Don't care for the place frankly, and I'm quite happy to not have a reason to drive out there again for while!

     What exactly turns you off about Taft?

  • Rental Property Investor · Memphis, TN · Member since 2018 · 9 posts · 3 votes
    7y

    Congrats on the deal! Seems like quite a find.

  • Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    7y
    Originally posted by @David Avetisyan:
    Originally posted by @Jeff C.:

    I've owned a few Taft properties over the years. Just sold one last month. Don't care for the place frankly, and I'm quite happy to not have a reason to drive out there again for while!

     What exactly turns you off about Taft?

    Imagine everything you might ever want a city.

    Then imagine a city with zero of those things.

    Congratulations, you now understand Taft.

    High crime rate (roughly double the national average), a per capita income far below the national average, little job growth, poorly ranked schools, aging housing stock that has far more than the usual percentage of derelict properties (no reason to build new housing with no population growth), a largely uneducated populous, and zero entertainment (other than committing crimes or watching others commit crimes, apparently), and it's marooned by itself in the middle of nowhere with no other cities reasonably close that could provide any either. But, at least you can enjoy the 110 degree summers and views like this all around:

  • Los Angeles · Member since 2019 · 50 posts · 9 votes
    7y

    Congrats on your first property  @David FoxI too am new to real estate, but still looking for my first property. I've been interested in Taft and Oildale and would like to buy cash as you did. What got you past all the negatives that you hear about Taft to just go for it and buy there? 

    @Amber Smith how long have you had your 4-plex? Have you had an issues with vacancy?

  • Member since 2019 · 10 posts · 1 vote
    7y

    @Mark De sagun just finding a the right place. Which I had set out to find having a purchase price I could do, with steady and decent tenants,  separate meters on gas/water/electric, newer roof, newer plumbing, and  negotiating a lower asking price that they accepted. So once all that was in place I had to go forward with the deal,  telling myself it was now or never,  regardless of the negatives I told myself it’s now or never!

  • Investor · Bakersfield, CA · Member since 2016 · 70 posts · 38 votes
    7y

    @Mark De sagun

    I usually just go with my own experience & knowledge of an area, specifically Taft. I personally get a great cash flow with my 4 plex & have had zero crime issues. I’m also flipping a house there & we’ve had no issues there for the 2 months we’ve been working on it. 

    To me, the more people that avoid Taft, the better lol...less competition. 

    I’ve had the 4plex for 2 & a half years. No issues with vacancy, I’m always able to fill  vacancies quickly. I’ve got 2 units that have long term tenants who’ve been there for years, the other 2 have had some turnover, but I’ve never had trouble filling them. 

  • Real Estate Broker · Bakersfield, CA · Member since 2018 · 269 posts · 597 votes
    7y
    Originally posted by @Mark De sagun:

    Congrats on your first property  @David FoxI too am new to real estate, but still looking for my first property. I've been interested in Taft and Oildale and would like to buy cash as you did. What got you past all the negatives that you hear about Taft to just go for it and buy there? 

    @Amber Smith how long have you had your 4-plex? Have you had an issues with vacancy?

    Mark, It's obvious from your picks that you're just choosing the cheapest areas. Keep in mind that the market price is effectively the aggregate opinion of the entire populace of how desirable a place is. Ask yourself why nobody in the entire universe really wants to be in these places. As appealing as the idea is that you've figured out something that the entire rest of the world has not, it's quite a bit more likely that the cumulative knowledge of the populace is pretty spot on. Familiarize yourself with the investment concept of a "value trap", and make sure you don't fall into one. 

    Have you actually gone to these areas and hung out? Go for it.. see what you see. Oildale is comprised of a lot of different areas, some much more tolerable than others. The pockets of newer housing in the far northern reaches aren't so bad, but they're also quite a bit more expensive, and I have a feeling that those units aren't what you're looking at.

  • Member since 2019 · 10 posts · 1 vote
    7y

    Thanks @Jeff C.. Glad you were able to share that info w/ me, what areas do you like at this time?

  • Rental Property Investor · Glendale, CA · Member since 2013 · 685 posts · 334 votes
    7y
    Originally posted by @Jeff C.:
    Originally posted by @David Avetisyan:
    Originally posted by @Jeff C.:

    I've owned a few Taft properties over the years. Just sold one last month. Don't care for the place frankly, and I'm quite happy to not have a reason to drive out there again for while!

     What exactly turns you off about Taft?

    Imagine everything you might ever want a city.

    Then imagine a city with zero of those things.

    Congratulations, you now understand Taft.

    High crime rate (roughly double the national average), a per capita income far below the national average, little job growth, poorly ranked schools, aging housing stock that has far more than the usual percentage of derelict properties (no reason to build new housing with no population growth), a largely uneducated populous, and zero entertainment (other than committing crimes or watching others commit crimes, apparently), and it's marooned by itself in the middle of nowhere with no other cities reasonably close that could provide any either. But, at least you can enjoy the 110 degree summers and views like this all around:

     I appreciate the blunt, well executed response. Just the isolated location in itself says a lot about it’s desirability. I guess the area may work for some, but I’m not sure it’s my cup of tea.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.