Bakersfield is one of California's more affordable metros, which is why so many investors from Los Angeles and the Bay Area have bought rentals here. Over time, a handful of houses bought one by one turns into a stack of separate loans. A blanket loan can combine five or more of them.
In short: LendingStreet offers blanket portfolio loans that put five or more Bakersfield-area rentals, each 1 to 8 units, under one loan with one closing and one payment. The loan qualifies on the portfolio's combined rent against its combined payment, with release provisions for selling one property and portfolio pricing. In Bakersfield, rents relative to prices are stronger than in most of California, which often lets portfolios qualify at normal leverage.
Investors stack single-family homes in East Bakersfield, Oildale, Northeast Bakersfield, south Bakersfield near Planz Road and White Lane, and older central neighborhoods such as Oleander-Sunset and Westchester. Many homes are 1940s to 1970s ranches and bungalows on decent-sized lots. Newer tract homes in the southwest, northwest and Rosedale cost more but need less work.
Nearby towns such as Shafter, Wasco, Delano, Arvin and Lamont also have rentals, usually at lower prices and with more agricultural-sector tenants.
Rents in these neighborhoods are supported by a large local workforce in health care, oil and gas, agriculture, logistics along Highway 99 and public employers such as the county and school districts. That broad base helps keep vacancy reasonable across a portfolio.
Out-of-area owners often bought Bakersfield rentals over several years with whatever loans were available. A blanket loan replaces those with one payment and one maturity, and it qualifies on the whole portfolio's rent, so one home leased below market does not hold up the refinance.
It can also simplify management for owners who live hours away. One servicer, one escrow account for taxes and insurance and one annual review are easier to track from Los Angeles or San Jose than a different lender for every house.
It can also help with homes that would be too small to finance alone. Individual DSCR loans start at $150,000, and in parts of East Bakersfield and Oildale, a modest home at normal leverage can fall near that line.
California reassesses property at its purchase price when it sells, and the base tax is about 1% of assessed value plus local bonds and assessments. For a refinance, nothing resets: you keep the current assessed value. That can help long-time owners, whose bills may be well below what a new buyer would pay.
Newer subdivisions in southwest and northwest Bakersfield often carry Mello-Roos special taxes, which are part of the tax bill and count in the DSCR payment. Check each property's bill.
This example is illustrative and not a quote. An investor owns eight single-family rentals in East Bakersfield, Oildale and Northeast Bakersfield, valued at $2,240,000 together. Rents total $15,600 a month. Taxes for all eight are $2,053 a month and insurance is $1,040.
At 70% LTV the blanket loan is $1,568,000. Estimated principal and interest on a 30-year term is about $10,697, for a total payment of about $13,790. Portfolio DSCR is about 1.13x. If the investor owned some homes long enough to have lower Prop 13 assessments, the ratio would be stronger.
| Item | Eight-home portfolio |
|---|---|
| Combined value | $2,240,000 |
| Loan at 70% LTV | $1,568,000 |
| Estimated principal and interest | $10,697 |
| Taxes | $2,053 |
| Insurance | $1,040 |
| Total monthly payment | $13,790 |
| Combined rent | $15,600 |
| Portfolio DSCR | 1.13x |
California's statewide rent cap and just-cause eviction law, the Tenant Protection Act, applies to many rentals, with exemptions that depend on property type, age and ownership. Single-family homes owned by individuals may be exempt if the right notice is in the lease, while homes owned by corporations and many LLCs with corporate members are generally covered. Ask a California landlord attorney how it applies to your portfolio.
For the loan, the cap matters mainly through rent growth assumptions. Lenders qualify on current rent and market rent, not projected increases.
Some cities in California have adopted their own local rent rules on top of the state law. Bakersfield has generally relied on the state framework, but confirm current local rules before you buy, especially if you plan to add properties in other Kern County cities.
Release provisions let you sell one property by paying down an agreed release price, usually a percentage above its allocated share of the loan. The remaining homes must still meet the DSCR standard. If you expect to sell a few homes in the next few years, tell us at the start so the terms fit. See /blanket-loan-release-clause.html.
Some investors combine a sale with a 1031 exchange into new rentals. Talk with your tax advisor about timing with the release.
The release clause works alongside the exchange timeline, so line up the release figure with the title company early. That avoids surprises when the sale and the replacement purchase need to close on tight dates.
Valley-floor Bakersfield homes are generally easier to insure than mountain properties, but older homes with original wiring, galvanized plumbing or older roofs can still be hard to place. Get quotes for every property early.
A blanket fits long-term holds. If several homes will be sold soon or need major rehab, separate loans may be simpler. Compare the trade-offs at /blanket-loan-vs-individual-dscr-loans.html. Investors with rentals in Fresno, Visalia or out of state can ask about multi-state or multi-metro portfolios at /multi-state-portfolio-loans.html.
Our investor loans are business-purpose loans on non-owner-occupied property. Send a rent roll with addresses, leases, tax bills and loan balances, and we will size the blanket at a few leverage levels. Call (877) 298-1001 or use the form below.
Five or more investment properties, each with 1 to 8 units.
No. Reassessment happens on a change in ownership, not on a refinance.
Yes. Special taxes on the bill are part of the payment.
On some programs, yes, as part of a multi-metro or multi-state portfolio.
Yes, through the release provision, as long as the remaining homes still qualify.
No. The loan qualifies on the properties' rent.
On some programs, yes, subject to cash-out limits and the portfolio clearing the DSCR minimum at the new payment.
Not directly. Lenders use current and market rent, but the cap can limit future rent growth on covered properties.
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