In Kern County, California (Kern County, CA metro), 1–4 unit investment properties carry an average effective property tax rate of 0.84% and landlord hazard insurance averaging $470 per $100K of coverage. At a median 1–4 unit acquisition price of $365,000 and Form 1007 market rent of $2,600/mo, a 75% LTV DSCR loan models at 1.20x DSCR ($2,175/mo total PITIA).
California Prop 13: Reassessed to 100% of purchase price at acquisition; capped at max 2% annual inflation increase thereafter.
Central Valley Standard Hazard
Standard county deed recording & nominal transfer fee ($50–$350 flat or ≤0.20% of consideration).
Underwrite post-acquisition tax bill using county millage calculator to prevent Year-2 escrow shortage.
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