Baltimore Cash Flow Rentals

[Nick Bowes]

I have a property manager and contractor in place I trust who is able to video properties for me and recommend areas to avoid.  I've seen his cash flow numbers with Section 8 tenants in place on properties he own directly and it appears to be a home-run from that perspective.  I'm starting to understand the “pocket” neighborhood thing in Baltimore but lets assume I make smart buys in in the 21215 and 21216 zips. My biggest fear is eventually pulling my equity out. Lets say on average I buy row homes at 15K, put 25K into each and install my tenants who have vouchers anywhere from $1,200 - $1,325.  On top of the cash flow I’m being told each unit can appraise at 70K after renovation is complete.

1. Does anyone have an opinion on the 70K valuation?
2. If I buy 5-10 row homes is there a decent market for portfolio buys whether straight up or at auction?
3. Anyone know what the owner occupied home rate in that area is? or how to find it?

4. Why aren't more people doing this?  This goes back to the "if it sounds too good to be true it usually is" theory

Thanks for any and all input

Nick