Estimating Rental Property Expenses -- Baltimore Area

[Samuel Mallery]

I am looking at purchasing a home in Baltimore -- Federal Hill Area (Open to other areas that would be good for commuters, if there are any suggestions)

I was wondering if anyone who has experience in this market can help me understand some of the expenses I should be accounting for when running the numbers. There is obviously the 5-15% of the monthly rent to account for and I know this would vary greatly depending on the house I purchase and how recently it was renovated, new roof replaced, etc. 

However, I was wondering if there might be something I am not thinking of when making these estimate that could be unique to the Baltimore market or just any advice or experience others have when estimating these expenses vs. what they actually incurred over the course of owning a rental. One of my friends who owns a home in Baltimore has mentioned about old wiring in the house that is expensive to fix and replace, so I wanted to better understand if there is anything I should pay extra attention to when screening properties.

Thanks in advance!

[Gayle Melnick]

@Samuel Mallery

Other Baltimore specific stuff...

Every non owner occupied property needs a rental license and lead inspection. You can get a lead free inspection or lead safe. Lead safe is easier but you need to redo it at each tenant turnover. 

To pass the lead inspection, the big items are no peeling paint on the outside. On the inside, if you have an unfinished basement you need to power wash and paint the floor  with a garage type epoxy paint in order to pass the dust sample. It should be a one time expense though. If you clean all the surfaces on the interior with simple green, you should pass the lead safe inspection.

You should get another coating on the flat roof even if you don’t see any obvious leaks. It’s pretty inexpensive.

Baltimore city sewage system is notoriously old and in bad shape. You may need to budget for replacing the main water line and the sewer line. That can be expensive.