Need advice for Maryland Rental property

[Alex Smith]

Thanks in advance to everyone who provide valuable information here . 

I am new to investing in rental properties. Although I own a rental condo for few years I am now getting serious about buying few rental properties in or around DC / Baltimore area. I will appreciate any advice on what to prefer / avoid.

Any advice on condo vs townhome will be appreciated also. Some condos in the price range 350K -450K have fees as high as $500. Is that normal?

I am also willing to meet / network with anyone local.

[Tim Jacob]

@Asif Ahmed Look into IRR and appreciation vs cash flow. Think of most of DC as a growth market. Note not all of it. You would do far better in Hampden or Fed Hill in Baltimore vs getting something too close to the wrong part of Southern Ave in DC or PG County because its cheap. Thus even in DC there are parts that are bad and wouldn't hope for them to turn because thats the same game people play who lose in Baltimore. If you compare the same asset like the 250k A grade Baltimore area rowhome vs the 450k A grade DC area rowhome the Cash or Cash (COC) or yield will be probably be higher in Baltimore. Tenant base will be the same so big risks are the same. DC will have more appreciation. If you want financial freedom faster Baltimore is better as that is obtained through cash flow. If you don't mind working for a bigger end payout all at once then DC is good. This can be offset by getting a 15 yr mortgage or taking excess cash flow from the Baltimore property and reinvesting in other assets or extra mortgage paydown. One positive to DC is if you spend all the Baltimore cash flow you will definitely end up with more in DC at sale. I cash flow about 2.5k per month. It is nice but also tempting to spend it. If you have financial discipline and don't you can offset that. Your IRR is a combination of all the ways you profit in the end. Hence you add appreciation, cash flow, principal pay down, and taxes.