Practical Guide For Baltimore Area Newbies

Alright so if you are getting started in real estate investing and you are in the Baltimore Metro area, here are some of the things you should know:

(On a side note, I still consider myself to be a newbie as well so this may not be all encompassing but definitely a good reference).

Ok so almost always I hear people ask the question "what areas are good areas to invest in?"... (This is going to be a long one)... There are many and I mean MANY submarkets (micro markets, secondary markets or whatever you want to call it) in the Baltimore area. Not only that, but the best area for you to invest in, are those that match your investment profile. The area you choose will depend on if you are a cashflow investor or a rehabber. Also, keep in mind that you will have to determine what is your comfort level as an investor... Are you ok with going to certain areas that may have higher crime rates or that may have older (100+ years) homes. There is a lot to determining an area, especially in Baltimore (another side note: If all you know about Baltimore is Fed, Fells, Canton and the Inner Harbor then really spend some time before investing in Baltimore). Those areas are EXTREMELY competitive and prices are just too high for it to make sense as a buy and hold (You also won't be able to find any flip deals unless you do some sort of marketing IE: direct mail, probates, etc). You will not find good deals in those area on the MLS. let me repeat that again for those who didn't read it the first time: YOU WILL NOT FIND GOOD DEALS IN THOSE AREAS ON THE MLS. (I know it's redundant but you should have the right expectation going in). 

So if you are left heartbroken and disappointed, let me reassure you that there is hope. There are still many good areas in the Baltimore area that aren't as competitive and/or can cash flow pretty darn well. I've saved you months of researching by putting a link to the Baltimore City Map Viewer tool in which you can find the 2014 Typology map (under the planning tab). This map is by far an excellent tool to determining great areas for investing in Baltimore. I also attached a link so you can see a description of the areas. This is not all encompassing but it will help build your investor toolbox. 

Baltimore City Map Viewer

Typology Descriptions

Another thing that I hear a lot is "How do I find deals?"... Let me tell you this: It is not by sitting on your computer looking at houses. You might be able to find a couple of singles or doubles on MLS but the real home runs are in doing things that no one else is doing. Anyone can sit in front of a computer all day looking at houses. Not a whole lot of people are spending hundreds of dollars on direct mail or Facebook ads or even probate leads. 

Lastly, if you plan on investing in this great city, do me a favor and drive around different neighborhoods and learn the local market. One thing I like to do is to try different restaurants all around the city. It helps me get a feel for the market and what areas are up and coming and (usually) I get a delicious meal out of it too.