All Forum Posts by: Amber Smith

I have all of my rentals insured through pacific specialty insurance with janette Ramsey. I’ve never had an issue getting my multi units insured. You could possibly get coverage on just the occupied units for now and a special coverage for the one under construction, and then convert that one to the same “occupied/rented” policy as the others once completed? Insurance can be super complicated tho , so I’m not sure. I have shopped around in the past and did find it hard to find insurance policies for multis, I always ended up back at pacific specialty. 

I haven’t heard of them nor worked with them but did recently use a hard money lender for the first time on my last fix & flip. Before finding the lender I went with, I did look heavily into bakersfield private/hard money lenders & found that they’re rates, points & fees were just ridiculous. So it really just depends on what kind of terms they’re offering you. Are you able to share those details? 
The lender I went with is based in Texas & gave me 8.2% interest rate, amortized over 12 months, 2 points & only few was $1000 for appraisal/inspection. The rates I found in bakersfield were in the range of 10-13% rate, 2-4 points & anywhere from $2000-$5000 in fees. I would love to hear if you’ve found a good local lender as I would love to support a local business! 

Congrats @Reba Vera! A lot of people have a negative outlook on investing in bakersfield but it’s really such a great area for rentals. I’d love to hear more details on your property...what area of town, any work needed on it or already rented? 

Hi @Hugo Cam, I sent you a message, I’d be happy to help you out! I started as an investor & have a few multi family units myself & most of my clients are investors as well. What part of town are you looking in? 

I personally use placer title & that’s Bc I started using them back when I bought my first house & just stayed with them & have since developed a working relationship with my title rep there over the years. 
I think developing a consistent relationship with one is key, that way they can check title on properties for you when you come across deals. Unfortunately you can’t tell much until you actually work with them haha...some are good and some are not so good. Def look for one that is title and escrow. Good luck! 

@Will Sholy I wouldn’t say I’ve had nothing but great experiences there haha...but I don’t think it’s been any different than my experience with rentals in bakersfield. Jobs and income arent as high as other markets but I’ve found as long as I properly screen tenants it works out fine. 

@Rohme Williams

I think you are on the right track and have a healthy amount of delay in you haha. One thing I would highly recommend for your first purchase is to buy in the winter months, preferably December/ Xmas New Years time. That is when I have bought every single one of my properties and the potential for deals is much higher. Summer is the height of the market. Lots of buyers looking to buy & move while kids are out of school & lots of sellers selling for the same reason & getting top dollar. The pool of buyers is much lower in winter Bc most people don’t want to make a huge purchase and move right around the holidays. I have gotten great deals during this time and am actually in escrow for my latest flip that I got for 20% off list price with an offer I submitted 1st day it hit the market. 
I know that doesn’t fit your timeline & goals, but just something to keep in mind. Good luck! 

@Bao Do

People have been saying for YEARS that prices are inflated & we’re heading for a recesssion or at least a market downturn. Theyve said it 3 years ago & they’ll say it 3 days from now too lol.

While yes, it’s always possible that the economy could experience some unexpected harmful event &  a recession or market correction could come, if you look at real estate now in kern county the fundamentals & market conditions are much more stable & different than pre- 2007/2008 crash conditions. 

For example, prices and home values have been appreciating at a steady rate comparable to the rest of the nation year over year (roughly 2-6% per year), there are much more regulations & restrictions on lending & appraisal practices that had previously led to the crash, and also the economy in general is pretty healthy & is providing a good foundation for a stable real estate market. 

Bakersfield & kern county is one of the few places left in ca where you can get good cash flow, good appreciation & a low price for entry. Good luck in your real estate ventures! 

@Allen Tracy

I used US bank for my Heloc and they were great! 

I do all my investing in Bakersfield for flips & one of my rentals is here in Bakersfield & the other is in Taft (the 4plex I used the Heloc on).

I still would strongly vote for staying local (within 1-2 hours driving distance) for your 1st property. Investing out of state is not for the faint of heart...hell, even investing in the house next door can be a headache as well lol. Even if you may not see the same kind of returns locally as those being pitched by TKP out of state, the knowledge and experience you will gain is invaluable. Out of state can be great and theres tons of people making money at it, but my 2 cents would just be to get your feet wet with something local that you can see, feel and experience. Learn your lessons, take your punches and then go out of state with the knowledge and experience youve gained.

There is still money to be made here in Kern county if you know where and how to look. If you want any specifics on certain properties or numbers feel free to message me!

Hi @Allen Tracy,

You & I have a LOT in common! I used a heloc to buy my first rental/ investment property & my dad lives in Amarillo, TX & we bought & sold a 2 unit property there about 4 years ago. 
My 1st question would be do you plan on buying a flip or a buy & hold rental? Bc your answer will determine if a Heloc will work for you. 
If you’re considering a heloc to use for a flip, go for it, all day long. If you stick to a budget and time frame, you’ll hopefully pay off the heloc in the time it takes to purchase, rehab & sell your flip. 
On the other hand, if you’re using the heloc for a long term rental, you have to consider a few things. Will the heloc funds be used for the full purchase price or just the down payment & closing costs? If it’s the latter, you essentially have a 1st & 2nd mortgage on your rental & your rents better be pretty good to be able to cover the principal & interest on 2 loans as well as your rental expenses, repairs & vacancies. 
When I used a heloc to buy my 1st 4 plex, I had a very strict plan in place to pay off that heloc in 2.5 years. I chose to do a fixed rate rather than variable Bc I knew I would have that heloc payment for at least 2 years & didn’t want to worry about rate hikes. The property had a monthly gross cash flow (rents minus mortgage [principal, interest, prop tax & insurance]) of about $1200 & my plan was to put that entire $1200 a month toward paying down the heloc. I ended up selling my primary house a year after doing the heloc & thus paid off the heloc early & still made about 20k in profit. 
If you plan on using the heloc for a long term rental, I would recommend being highly disciplined & plan on not making a profit for as long as it takes you to pay it off. 
As for turn key, I have never used a TK Bc I do all the work and management on my properties myself & am also a control freak lol...but I’ve learned a TON & know what to look for in flips or rentals, what to avoid, what to spend money on & what not to, etc. It’s hard to learn those things using a TKP, esp on your 1st prop. Also, I’ve heard a lot of horror stories on BP about TKP, just do a search & youll find them. 
I would recommend sticking within a 2 hour radius, starting with a small multi unit, 2 to 4 units, & getting your hands dirty with repairs & prop management if possible. 

Good luck!