Should I avoid Baltimore?

[Joseph Braun]

My partner and I are just starting out with RE. We are looking to do LTRs in the MD area. Currently every property we are seeing just does not have enough ROI or cashflow, except in Baltimore. We are finding properties in BALT that are cheap enough (100-150k) that we could purchase, do renovations and then rent it to make a pretty good cashflow. But with there being so many options we feel like we are missing something. What are we missing? Why aren't more bigger/experienced investors doing this?

We want to understand this market better before we make a serious mistake. Thank you!

[Adam Schwartz]

@Joseph Braun

I’m originally from Baltimore and yes to everything @Nicholas L. mentioned. The old adage, “Location, Location, Location” could not be more true then in Baltimore. There’s a few really good easy read books out there as to why Baltimore developed the way that it did starting over a 100 years ago which in many ways ways is still pervasive and has crippled the city even to today.

Even in the “gentrified” neighborhoods of Federal Hill, Fells Point, Canton, Harbor East, desirability can be very block by block so you have to be careful that you understand these neighborhoods (and blocks within) somewhat intimately. Cheap in Baltimore does not equal good prospect for cash flow.