2700 White Ln

Bakersfield, CA 93304

$8,400,000B+

None bd · 22201.0 ba · 59,600 sqft · Built 1965 · MultiFamily · Active · 118 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $157,509/mo
• Mortgage (P&I): −$44,051
• Tax + insurance: −$14,000
• HOA: −$0
• Vac / Maint / Mgmt: −$33,077
• Net cashflow: $66,382/mo
• Annual: $796,579/yr
• Cap rate: 15.78%
• Cash-on-cash: 33.87%
• DSCR: 2.51
• 1% rule: 1.88%
• Cash to close: $2,352,000

Investor read

• This is a 149 × 1-bed/1-bath units multifamily listed at $8.40M. Condition is rated average.
• At list price, monthly cash flow is $66k ($797k/yr) — positive. Per door: $446/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($158k rent vs $8.40M).
• It's been on market 118 days — a 9% lower offer ($7.64M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $7.64M (9.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $58k of loan paydown is wiped out by about $252k of value loss. Plan a longer hold.
• Location reads 58/100 on livability (#716 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing A+; Watch: health & safety D, schools D-, crime F.
• Kern High (urban): math 21% / reading 51% proficiency, ranked #860 of 1,400 in CA (top 61%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents soft (-1.7%/yr); 159 active listings in the ZIP; 3,244 units permitted in Kern County in 2024 (73 in 5+ unit buildings).
• Kern County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 3 sale attempts; this cycle's ask is 884111% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $2.35M cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 15.8% vs local median 3.6% in Bakersfield — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• At $157,509/mo this rent would consume 3721% of the median local household income ($51k/yr) (locally 2587% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 118 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Built in 1965 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?

Repairs flagged (vision-AI assessment)

• Major: exterior paint — The exterior paint appears to be peeling and in need of repainting.
• Major: roof — The roof appears to be in need of repair or replacement.
• Major: flooring — The flooring appears to be in need of replacement or repair.
• Major: interior walls/paint — The interior walls and paint appear to be in need of repainting.
• Major: systems — The systems appear to be in need of repair or replacement.
• Major: landscaping — The landscaping appears to be in need of maintenance and improvement.