Ridge Lending Group is bringing an off-market opportunity to our valued customers—a single-family rental in East Bakersfield that may be worth evaluating if you're comfortable with value-add projects. This opportunity comes from a past Ridge Lending Group client who has an off-market listing he would like to sell.
Most turnkey properties in today's market are already priced at retail, leaving limited room for forced appreciation. This property takes a different approach: it's priced at the current as-is appraisal, giving the right investor the chance to create value through strategic improvements rather than paying someone else's rehab markup.
What caught our attention:
- Off-market acquisition – Available to Ridge customers before hitting the broader market
- Established rental history – Multi-year tenant track record with consistent occupancy
- Defined improvement scope – Estimated $45-55K in upgrades that could support higher rents
This isn't a passive, mailbox-money investment. It's better suited for investors with rehab experience who understand how to underwrite renovation costs and manage contractor timelines. The numbers suggest potential for solid returns if executed well, but like any value-add deal, the actual outcome will depend heavily on accurate cost estimates and market rent assumptions.
If you or someone in your network has experience with light-to-moderate rehab projects and wants to evaluate a property with measurable improvement potential, here's the full breakdown of the opportunity—including the risk factors you'll need to consider:
Why this deal may be worth evaluating: This Bakersfield property could offer attractive upside for the right investor who's comfortable with "value-add" work. Here's a breakdown of the opportunity and our high level thoughts on how you might structure the acquisition:
Key property details
- 2 bedrooms / 1 bathroom.
- Built ~1924 in the 93305 ZIP (East Bakersfield) neighborhood.
- According to the seller: property needs approximately $45,000-$55,000 in upgrades/repairs (framing, electrical, concrete, cosmetic) to bring it to good shape.
- The seller reports historically strong occupancy – one renter several years, prior one longer, with annual rent increases and next tenant secured before vacancy.
- Last known rent was $1,057 (below current market), and the Internet projects future rent “over $1,250” without the full cosmetic improvements. (a trusted service which estimates rents puts the potential at nearly $1,500!)
- Appraised last month for $135K as-is ~ without the $55K in anticipated work. The seller is offering the property for $135,000
- Currently vacant. No HOA.
Investor scenario
Here’s how an investor might model this:
- Acquisition cost: $135,000 purchase price.
- Repair/upgrade budget: let’s assume $50,000 (midpoint of estimate).
- Total cash invested: ~$185,000.
- Projected stabilized rent: assume $1,250/month = $15,000/year.
- Gross rental yield: ~$15,000 ÷ $185,000 ≈ 8.1%.
- Expenses: Estimate maybe 35-45% of gross rent for maintenance, property management, taxes, insurance, vacancy/reserves (depending on condition and market). If we pick 40% → net operating income (NOI) ≈ $9,000.
- Capitalization rate: $9,000 ÷ $185,000 ≈ 4.9%.
- Cash-on-cash: If purchased cash, your yield is the NOI ÷ $185K = ~4.9%.
- Upside potential:
- Rent is expected to go higher than $1,250 once full improvements are done.
- Property value may incre ase as the condition improves and the neighborhood strengthens.
- Given the seller history of low vacancies and long-term tenants, you may have reduced turnover risk.
- Risk factors to weigh:
- The property needs significant repairs ($45k-$55k) to reach the projected rent and market condition. If cost overruns occur, return drops.
- Older property (1924) so structural/electrical/plumbing risk may be higher.
- Market assumptions: the projected “over $1,250 rent without cosmetic improvements” is the seller’s estimate—not guaranteed.
- Capital tied up in repairs before cashflow fully hits.
- Vacancy during rehab period.
What you can do next
- If any members of your network want this property, encourage them to:
- Conduct a full due diligence/inspection (structural, framing, electrical) to validate the $45-$55K repair estimate.
- Get rental comps in the 93305 ZIP (for 2 bed/1 bath) post-rehab to confirm the $1,250+ rent potential.
- Run financing scenarios (cash purchase vs mortgage) to compare cash‐on‐cash returns.
- Confirm property tax, insurance, management fee assumptions.
- Assess the neighborhood trends (rental demand, occupancy, good tenants) to validate the history of long-term occupancy.
