Bakersfield is one of the few California metros where an ordinary single-family rental or duplex can still carry its own debt. The catch is that the purchase resets the property tax bill, and a statewide rent cap limits how fast you can raise rents later, so the numbers need to work on day one.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals across Bakersfield and the rest of Kern County, qualified on the property's rent instead of W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out up to 75% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. LLC borrowers are standard.
Most rental demand in Bakersfield comes from oil field, agriculture, health care and logistics workers, plus students at CSU Bakersfield and Bakersfield College. That spreads tenants across the whole metro rather than concentrating them near one employer.
East Bakersfield and the area around downtown have the oldest and least expensive homes, many built in the 1940s and 1950s. The Southwest, around Stockdale and Gosford, and the Northwest, including Rosedale and Riverlakes, are mostly 1980s to 2000s tract homes that lease to families. Oildale, north of the Kern River, is unincorporated and follows Kern County rules instead of city rules.
| Submarket | Typical stock | What to check |
|---|---|---|
| Downtown, Westchester, East Bakersfield | Older bungalows, duplexes, small multi-unit | Roof, sewer line, electrical, deferred repairs |
| Southwest (Stockdale, Gosford, Seven Oaks) | 1980s to 2000s tract homes | HOA leasing rules in newer tracts |
| Northwest (Rosedale, Riverlakes) | Newer single-family homes | Mello-Roos or special assessments on the tax bill |
| Oildale and Lamont | Small older homes, unincorporated | Kern County permits and code history |
Under Proposition 13, California property tax starts at 1% of assessed value plus local voter-approved levies and assessments, and the assessed value resets to the purchase price when the property changes hands. A seller who has owned for 20 years may be paying a fraction of what you will pay.
Build your DSCR estimate on your purchase price, not the seller's bill, and look for Mello-Roos (Community Facilities District) charges in newer Northwest and Southwest subdivisions. A supplemental tax bill usually arrives after the sale, so plan for it in reserves.
This example is illustrative and not a quote. An investor buys a duplex near Bakersfield College for $420,000. The units lease for $1,500 and $1,450, so qualifying rent is $2,950 a month. Property taxes are budgeted on the purchase price at about $402 a month and insurance at $165.
At 75% LTV the loan is $315,000 and estimated principal and interest is about $2,200, for a total payment of about $2,768 and a DSCR of about 1.07x. At 80% LTV the loan is $336,000, the payment is about $2,915 and DSCR is about 1.01x, still at or above the 1.0x standard minimum.
| Item | 75% LTV | 80% LTV |
|---|---|---|
| Loan amount | $315,000 | $336,000 |
| Estimated principal and interest | $2,200 | $2,347 |
| Taxes and insurance | $568 | $568 |
| Total monthly payment | $2,768 | $2,915 |
| DSCR at $2,950 rent | 1.07x | 1.01x |
California's Tenant Protection Act (AB 1482) limits annual rent increases and requires just cause for many evictions on rentals more than 15 years old. Some single-family homes and condos are exempt, but the exemption depends on how the property is owned and on giving tenants the required notice, and LLC or corporate ownership can affect it.
For a DSCR loan, this means you should not count on raising a below-market lease quickly after closing. Underwrite on the rent in place, and talk with a California landlord attorney about which rules apply to your building.
If you buy a home with a tenant already in place, ask for the lease, the rent history and any notices the seller has given. Those documents tell you whether AB 1482 applies and what the next lawful increase could be.
Bakersfield's valley floor carries less wildfire exposure than the Kern River Valley, Tehachapi or foothill areas, but the California insurance market has tightened statewide, and some carriers have limited new policies. Get a quote early, before you remove contingencies.
Older homes with original wiring, aging roofs or evaporative coolers instead of central air can be harder to insure and harder to rent in summer heat. Those issues show up in both the premium and the tenant pool.
We lend on non-owner-occupied rentals only: single-family homes, condos, townhomes, duplexes, triplexes, fourplexes and 5-8 unit buildings. Nine or more units is a commercial loan, covered on our multifamily page.
Bakersfield investors often buy with cash or a short-term loan, fix up an older home, then refinance into a 30-year DSCR loan. Cash-out seasoning varies by program, so check timing before you plan the refinance.
For a broader view of California rules, see our California DSCR page. To start, call (877) 298-1001 or use the form below with the address, rent and purchase price.
Some investors also use a DSCR loan to buy outside the city, in Shafter, Tehachapi or Delano, where prices and rents differ from central Bakersfield. The same 1-8 unit rules apply.
We start with the appraiser's market rent or the lease in place, compare it with the full monthly payment including taxes, insurance and any HOA, and confirm your credit and reserves. Tax returns and pay stubs are not part of it.
On older East Bakersfield homes, the appraisal condition rating matters. Visible deferred repairs can lower value or require work before closing.
No. The loan qualifies on the property's rent compared with its monthly payment. We check credit, with a 620 minimum, and reserves, but we do not use W-2s, pay stubs or tax returns.
Prop 13 resets the assessed value to your purchase price. A long-time owner's bill is based on an older, lower value. Budget on your price plus any local levies, and expect a supplemental bill after closing.
It applies to many California rentals more than 15 years old. Some single-family homes and condos can be exempt depending on ownership and notice. Ask a California landlord attorney about your property before you plan rent increases.
Yes. LLC borrowers are standard on DSCR loans. The members usually sign for the loan personally, and we review the LLC documents at closing.
DSCR loans start at $150,000 with no stated maximum. Many Bakersfield single-family homes and duplexes fit comfortably above that minimum.
Yes, if it is a non-owner-occupied 1-8 unit rental. Unincorporated areas follow Kern County permit and code rules, so check the county record for unpermitted additions.
You can lower the loan amount, choose a property with stronger rent, or look at our sub-1.0 DSCR programs, which exist on some files with added requirements.
On some programs, yes, using projected short-term revenue. Bakersfield is mainly a long-term rental market, so check city or county rules and realistic demand before relying on nightly income.
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