Rental properties in Baltimore or Newark for a newbie?

Rental properties in Baltimore or Newark for a newbie?

Brooklyn, NY · Member since 2016 · 12 posts · 0 votes

Hello BP community, my name is Malcolm and like many of you I have aspirations of becoming a RE investor. 

Im from NYC and the market here is ridiculous, so I am looking to possibly get into Rental investing in the NJ - Newark or Baltimore area. I have a 1-2 two year time horizon, but I want to see if this even makes financial sense (working with limited capital sub 25k) ? I work full time in Finance and actively trade stocks but I want to take on the RE challenge, please let me know if anyone is actively invested in these markets and and ideas on this as an investment strategy? 

Thank you, 

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  • Rental Property Investor · Long Island, NY · Member since 2015 · 490 posts · 301 votes
    7y

    @Malcolm Brewer 25k won't get you too far in Newark unless you get a HUD loan with 3% down and house hack which I see a lot of people doing. Worth looking into for you from that angle.

  • Brooklyn, NY · Member since 2016 · 12 posts · 0 votes
    7y

    @Allan Szlafrok thank you Allan. I have considered house hacking

  • Contractor · Passaic, NJ · Member since 2015 · 60 posts · 14 votes
    7y

    @Malcolm Brewer I’m no investor, but speaking to investors I’ve learned that you would want to be nearby, especially as a newbie.

    Commuting from Brooklyn to Baltimore to check progress might be a bit much.

  • Property Manager · Baltimore, MD · Member since 2014 · 1k+ posts · 1k+ votes
    7y

    $25k could go a long way in some Baltimore neighborhoods, but as others have suggested its hard to do without managing construction projects day-to-day and rentals week-to-week.  I wouldn't consider long distance investing here without a solid partner in town.

  • Real Estate Investor · Waldorf, MD · Member since 2014 · 592 posts · 320 votes
    7y

    Yeah B-more will get you a property up to roughly 80-100k, (with HM support of course), to either flip or rent.  It's doable for sure like @Joe Norman said.  I'm investing in the area now and looking for another project to jump into once my current project gets refinanced.

  • Brooklyn, NY · Member since 2016 · 12 posts · 0 votes
    7y

    @Moe Hirsch thanks for that tip. It's just NYC has large barriers to entry in the market nowadays !!

  • Brooklyn, NY · Member since 2016 · 12 posts · 0 votes
    7y

    @Joe Norman thanks for that note. I have also thought about partnership, I will network in the upcoming months and explore that options as well!!

  • Brooklyn, NY · Member since 2016 · 12 posts · 0 votes
    7y

    @Lamont Marable thanks for the information. Do you have a rental property ? How would you classify that area ?

  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    7y

    Baltimore is fine, as long as you find somebody who can work with you as a partner, or realtor, or gm or pm.

    I would search a team before you search a house in Baltimore unless you want to go back and forth all the time.

  • Contractor · Passaic, NJ · Member since 2015 · 60 posts · 14 votes
    7y
    Originally posted by @Moe Hirsch:

    @Malcolm Brewer I’m no investor, but speaking to investors I’ve learned that you would want to be nearby, especially as a newbie.

    Commuting from Brooklyn to Baltimore to check progress might be a bit much.

    So then Newark would be a better option.

  • Real Estate Investor · Waldorf, MD · Member since 2014 · 592 posts · 320 votes
    7y

    @Ozzy Sirimsi took the words right out of my mouth @Malcolm Brewer

    Now that I'm more active I seem to run into Ozzy more often. When I was a PRO member I had no time for the forum.  Now I do!

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