Best Places to Buy Rental Property in Bakersfield, CA for Steady Cash Flow

Table of Contents

• 1. Bakersfield Real Estate Market Overview
• 2. Why Invest in Bakersfield, CA?
• 3. Understanding Cash Flow Potential
• 4. Best Neighborhoods to Buy Rental Property
• 5. Legal & Regulatory Considerations
• 6. Best Types of Rental Properties
• 7. ROI Expectations and Market Trends
• 8. Tips for New Investors
• 9. Conclusion

1. Bakersfield Real Estate Market Overview

As of April 2025, the average home value in Bakersfield, CA is approximately $399,843, reflecting a 3.1% increase over the past year. Homes typically go to pending status in around 20 days, indicating a highly active market. The median home sold price in Bakersfield was $389,458 in April 2025, up 2.5% from last year, and the median price per square foot was $238. [Source] [Source]

2. Why Invest in Bakersfield, CA?

• Affordability: Bakersfield offers relatively affordable property prices compared to other major California cities, making it accessible for investors.
• High Rental Demand: With a growing population and a significant portion of households occupied by renters, there’s a strong demand for rental properties.
• Economic Growth: The city’s economy is experiencing steady growth, driven by sectors such as agriculture, energy, and healthcare.

3. Understanding Cash Flow Potential

Investing in Bakersfield rental properties can yield positive cash flow, especially when leveraging long-term rental strategies. For instance, a property rented at $1,500 per month with expenses totaling $1,200 can generate a monthly cash flow of $300. Key factors influencing cash flow include property location, management efficiency, and occupancy rates.

4. Best Neighborhoods to Buy Rental Property

1. Greenacres

Greenacres is a popular neighborhood in Bakersfield, known for its family-friendly environment and quality schools. The area offers a mix of single-family homes and new developments, making it attractive for long-term rentals. [Source]

2. Rosedale

Rosedale is a suburban neighborhood with a mix of residential and commercial properties. It offers larger lot sizes and newer homes, appealing to families and professionals. The area’s growth and development make it a promising investment spot. [Source]

3. Seven Oaks

Seven Oaks is an upscale neighborhood featuring golf courses, parks, and high-end homes. While property prices are higher, the area attracts affluent tenants, offering potential for higher rental income. [Source]

4. Oleander/Sunset

Oleander/Sunset is one of Bakersfield’s historic neighborhoods, featuring charming older homes and tree-lined streets. The area is undergoing revitalization, attracting young professionals and artists, making it suitable for both long-term and short-term rentals. [Source]

5. Tevis Ranch

Tevis Ranch is a well-established neighborhood with a mix of residential properties and amenities. Its proximity to schools, shopping centers, and parks makes it appealing to families, ensuring steady rental demand. [Source]

5. Legal & Regulatory Considerations

• Rent Control: California’s statewide rent control laws, such as AB 1482, limit annual rent increases and require just cause for evictions. It’s essential to understand these regulations when investing in rental properties.
• Short-Term Rental Regulations: Bakersfield has specific regulations for short-term rentals, including registration requirements and adherence to zoning laws. It’s essential to consult the city’s official guidelines before investing in properties intended for short-term rentals.
• Property Taxes: California’s property tax rates vary by county and municipality. Investors should research local tax rates and assess their impact on potential returns.

6. Best Types of Rental Properties

• Single-Family Homes: Ideal for families and long-term rentals, offering privacy and space.
• Multi-Family Units: Duplexes or triplexes can maximize rental income and reduce vacancy risks.
• Condos: Suitable for short-term rentals, especially in tourist-heavy areas.

7. ROI Expectations and Market Trends

Investors in Bakersfield can anticipate annual returns between 6% and 9%, depending on property type and management efficiency. The market trend shows a steady appreciation in property values, with a 3.1% increase in median home prices over the past year. Rental demand remains strong, particularly in tourist-heavy areas. [Source]

8. Tips for New Investors

• Research Local Regulations: Understand the latest rental laws and zoning regulations to ensure compliance.
• Work with Local Experts: Engage with real estate agents and property managers familiar with the Bakersfield market.
• Consider Long-Term Rentals: Given the area’s regulations on short-term rentals, long-term rentals may offer more stability.
• Evaluate Property Management Options: Professional management can help maintain property condition and tenant satisfaction.

9. Conclusion

Bakersfield, CA, presents a promising opportunity for investors seeking steady cash flow and long-term appreciation. By selecting the right neighborhood, understanding local regulations, and effectively managing properties, investors can capitalize on the city’s strong rental demand and limited housing supply.

For personalized investment strategies and property analysis, contact PEAK Business Consultancy Services today.