All Forum Posts by: Josh Justiniano

Go to the files portion of BP and download an excel model to analyze. 

Make sure to account for vacancies. Find out vacancy rate in the area, and add some cushion because of the oil crash. I bet vacancies are likely to rise in Bakersfield soon.

Figure out the remaining economic life of the big ticket items (Roof, A/C, Etc..) find out reserves needed every month.

Apply some cap rate to find your max offer, make sure your mortgage constant is less than cap rate.

Get original lease agreements.

Get tenant estoppels.

Check bank records or Schedule E's if possible to verify income.

Get copies of the last few rent checks.

Check permits if it's an older house in Bakersfield. Ran into a few issues on an older property with a re-roof b/c owner didn't get final inspection. Always good to check.

Good luck.

@Matt OwenYeah it's getting trickier now in Bakersfield. If you can find a good 7 cap in a B area you're doing great.

@Matt OwenBe careful on the east side in Bakersfield. Things can get dicey there. If you're going to go on the east side make sure you have a cap in the double digits. 

Yeah I've done a few flips and bought a couple houses there. It's a whole lot slower moving than LA, and industry is more concentrated.

Just make sure you're buying in a decent area, and if you leave yourself some room for rents and valuations to go down you should be fine. I always look at it like if rents and valuations go down 10%, what will happen? If I can break even or still make money, it's probably decently safe.

I have a great realtor who I work with that gives me excellent deals on listings. I can refer you to him if you send me a message.

I've heard so many mixed things about management companies out there. Currently, I own 4 SFH rentals there and I use Able property management. They've been pretty good. It's really too soon to tell, but so far it's been ok. It's only been about 3 months. I'd ask @brandon leach.

@Dillon Bell Oil has absolutely had an effect. The thing to remember is oil is often traded on futures, so the real hurt in revenues will take place months after the price decline. Additionally, if the dollar keeps strengthening, prices might even go lower. 

I have spoken to a few office brokers in Bakersfield and they've said they've seen office space being sub let by oil companies and they do not expect a bottom out until mid 2017. 

Maybe around that time would be a good time to start to pick up some rentals in Bakersfield.

As far as rentals around CA, Fresno is more diverse than Bakersfield and is within driving distance from about anywhere in CA.

Skip trace and send them new letters. We will send emails sometimes as well.

We've been skip tracing for about 6 months, but haven't had a ton of luck with it yet. Anyone getting good results?

Welcome. @Michael Quarles would be a great guy to get to know. He's pretty active there and has posted some good content.

I do a lot of business in Bakersfield as well. If you need any help give me a shout out.

@Jay Hinrichs I got an email notification about a keyword alert for Bakersfield and it took me to this topic. I just assumed that's where it must have been.